Report: Microsoft could lay out $3 billion to help Dell go private

Three-way talks allegedly underway

Image credit: Courtesy of Dell Inc.

Image credit: Courtesy of Dell Inc.

Microsoft may be planning to invest between $1 billion and $3 billion as part of a leveraged buyout of Dell, according to a report this afternoon from CNBC.

Citing "sources close to the matter," the network's David Faber said that three-way talks are under way involving Microsoft, Dell CEO Michael Dell, and investment firm Silver Lake Partners, one of the prime movers behind the effort to take Dell private again. "While an investment from Microsoft is unexpected, it makes sense considering that Microsoft depends on personal computer makers like Dell to help sell its software products," Faber wrote.

Reports earlier this month confirmed that the company has entered into negotiations over a private equity buyout, which would allow it to pursue its long-term goals without having to constantly please stockholders.

Dell has been in a transitional period for some time, having gone on an acquisition spree designed to help the company turn itself into a business services company, rather than simply a manufacturer of commodity hardware. Dell bought seven smaller businesses in 2012, spending a total of $4.9 billion. Headliners included thin client maker Wyse, security vendor SonicWall and Quest Software, which produces IT management applications.

However, a tight economy and falling profitability have kept Dell's stock price down -- and sharper-than-expected declines in PC demand make the future look relatively bleak.

Email Jon Gold at jgold@nww.com and follow him on Twitter at @NWWJonGold.

CHANNEL CHOICE: Vote Now for your favourite in the three categories: Vendor, Distributor and Reseller. Voting closes August 8.

Tags business issuesConfiguration / maintenancePChardware systemsinvestmentsData CenterCNBCbuyoutcorporate issuesDellMicrosoftfinancials

More about CNBCDellMicrosoftQuest SoftwareSilver Lake PartnersSonicWallWyse

ARN Directory | Distributors relevant to this article

Comments

Comments are now closed

 

Latest News

04:09PM
One in four channel partners offering deduplication: Kroll Ontrack
04:06PM
Acer appoints new Australian channel boss
03:16PM
Salesforce joins BSA
02:17PM
Insight takes Cloud honours at Microsoft awards
More News
05 Aug
Systems Technology Day - Build Your Own Private Cloud
06 Aug
Oracle Employee Experience Journey Mapping Workshops
20 Aug
Westcon Group Imagine 2014 - Melbourne
21 Aug
CAST 611 Advanced Penetration Testing
View all events