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Microsoft looks to invest $1bn to $3bn in Dell buyout

Takes route 1 into the hardware business
Wed Jan 23 2013, 13:41
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SOFTWARE REDEVELOPER Microsoft is rumoured to be considering a multi billion dollar investment in Dell as part of the tin box flogger's attempt to arrange a leveraged buyout.

Dell reportedly has been in talks with private equity firms to set up a leveraged buyout that would take the firm private. Now CNBC is reporting that Microsoft is considering making an investment in Dell to the tune of $1bn to $3bn to help finance any buyout deal.

Microsoft is said to be in talks with Silver Lake Partners and Dell founder, CEO and significant shareholder Michael Dell about making the billion dollar investment in the company. Microsoft is the first major technology firm that has been linked with Dell's reported buyout talks, as previous talk had surrounded a number of private equity firms.

Microsoft's apparent interest in Dell is not particularly surprising. After all Dell remains one of the largest PC, and thus Windows, vendors. Microsoft has also been making moves to get into the hardware business, with its Surface tablet line just the first in what it has said will be many Microsoft branded devices in the future.

Although Dell might not be at the top of the PC pile, it still sells significant PC volume and an investment would give Microsoft the boardroom access it needs to have influence on the design, manufacturing and retail resources it will need if it aims to compete against Apple, Lenovo and HP. µ


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