Microsoft linked to Dell deal
Software heavyweight reportedly in talks to join buyout of firm
Microsoft Corp. is reportedly in discussions to help finance a buyout of struggling computer maker Dell Inc.
According to the Wall Street Journal, which cited a person familiar with the talks, Microsoft's investment "would likely be in the range of a couple of billion dollars." CNBC reported a range of $1 billion to $3 billion, citing sources close to the matter.
Last week, rumors began swirling that Dell was considering a leveraged buyout and was in talks with private equity firms, with a deal that could be completed by the end of February. Michael Dell, the company's founder and chief executive, has reportedly been negotiating with Silver Lake Partners, which seeks banks and other co-investors to help fund the deal, the Journal said.
Microsoft's entry into the talks was unexpected. Still, Dell is one of the largest companies to make computers running Microsoft's software.
CNBC reported that if Microsoft gets involved, its investment would be in the form of preferred security.
Dell has for years tried to transform itself as it runs into increased competition from Lenovo, Apple, Google, Acer, IBM, Samsung and Hewlett-Packard. About 45 percent to 50 percent of its revenue is estimated to come from desktop and notebook PCs, Wu said.
The company has $11.3 billion in cash and $5.3 billion in long-term debt.
- 11 guaranteed steps to cut family spending
- S.L. mayoral candidates tangle over political...
- VW executive apologizes but says scandal not...
- RSL unveils massive new solar project
- UTA to bolster transit service for 'College...
- Tourism brings more than $1 billion in tax...
- UDOT opens new turn lanes aimed at easing...
- Balancing act: To keep employees, focus on...
- 40 percent tax on employer insurance... 22
- Ogden farmer's pumpkin patch, version... 10
- Warehouse clubs: Where to find the savings 8
- VW executive apologizes but says... 5
- Rocky Mountain Power honors LDS Church... 5
- Salt Lake police receive $1.8 million... 5
- A multigenerational hit: Student debt... 3
- S.L. mayoral candidates tangle over... 3