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Microsoft May Invest $1B-$3B In Dell Buyout

Posted by Soulskill on from the dude-you're-gettin-dell dept.

alexander_686 writes "We heard that Dell is in buyout talks with private equity firms. Now, the word is that Microsoft may invest one to three billion dollars in that buyout. For that amount of money, Microsoft isn't going for majority ownership, but it would be a significant stake. Dell is worth around $22-25 billion. Speculation is that investors would put up $5-7 billion in equity, borrowing the rest. As a point of reference, Michael Dell's stock is worth $3.6 billion."

2 of 151 comments (clear)

  1. It would make sense by cshark · · Score: 5, Interesting

    Microsoft has been dissecting Apples strategy of being a device and os company. Or perhaps they want to be IBM, which does the same thing? A Microsoft stake in Dell might mean an end to Studiobuntu Laptops, though. And I think that would be a shame. Those things are nice.

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  2. Microsoft needs Dell by onyxruby · · Score: 5, Interesting

    Dell is the most loyal company to Microsoft of any of the OEM's and they always play ball. Their efforts on *nix support are minimal and they are legendary for the work they will do try to inspire you to run Windows. With Asian OEM's increasingly dis-enfranchised with Microsoft the need for a partner that isn't going go their own way is paramount.

    I wouldn't say things are as bad as around a decade ago when Microsoft bailed out Apple to prevent their bankruptcy. That being said I think a fair argument can be made that Microsoft needs Dell more than Dell needs Microsoft. If your surprised about this investment you haven't been in the industry very long.