Dell unveils private equity buyout worth $24.4 bn

The move, which would delist the company from stock markets, could ease some pressure on Dell, which is cash-rich but has seen profits slump, as it tries to reduce dependence on the slumping market for personal computers.

Fitch ratings, meanwhile, downgraded Dell to BB+ from A, and placed it on Rating Watch Negative pending the buyout.

Analysts have said the deal may give the company a chance to regain some footing in a market in which smartphones and tablets are overtaking laptop and desktop computers.

"Michael has been trying to turn Dell into a supplier of enterprise solutions for a long time," said Roger Kay, analyst with Endpoint Technologies.

"He has pleaded with Wall Street to give him time."

Kay told AFP that going private would make a transition easier by avoiding the spotlight of "ugly results," which could come from scaling back the PC business.

Microsoft's participation in the deal suggests that Dell would remain in PCs and the Windows-based ecosystem, he added.

Deutsche Bank's Chris Whitmore said in a research note this week that Dell "would be free to execute his turnaround without the scrutiny of the public market" with "flexibility to do what he sees fit in order to drive long-term value."

Dell "could get more aggressive" in its enterprise software and cloud services, to make the company less dependent on PCs, the analyst said.

The Texas-based computer maker, which Dell started in his college dormitory room, once topped a market capitalization of $100 billion as the world's biggest PC producer.

Dell is now the number three global PC maker, behind Hewlett-Packard and Lenovo, according to the latest report from market tracker IDC, showing Dell's market share of 10.6 percent in the fourth quarter.

 Rival HP said that Dell "has a very tough road ahead" with "an extended period of uncertainty and transition that will not be good for its customers."

HP "plans to take full advantage of that opportunity," it added.

Microsoft's participation further clouds the role of the Windows software maker, which has begun its own hardware efforts with the Surface tablet.

Microsoft said it was "committed to the long term success of the entire PC ecosystem and invests heavily in a variety of ways to build that ecosystem for the future."