Microsoft participates in Dell buyout talks

Interesting that this hasn't been posted yet:

[The Wall Street Journal reports that Microsoft is in talks with private equity firm Silver Lake Partners and Michal Dell to help finance a deal that would take Dell Inc. off the stock market and into private ownership. As yet there has been no commitment from Microsoft to take part in the deal but “people familiar with the talks” said Microsoft is likely to contribute $2 billion of the necessary $22 billion price tag for Dell Inc. Spokespeople for Microsoft and Dell have yet to comment.

Microsoft participates in Dell buyout talks - Corporate - News - HEXUS.net

Talk about investing in cheap and nasty.
 
Hi there
actually this makes sense in that Ms obviously wants to get its fingers more directly into the hardware pie -- Dell is a good choice since it already has experience with the whole supply chain management side (SCM) of hardware sourcing, component integration and delivery and is available relatively cheaply (if you think 22 billion dollars is cheap !!).
If Ms are going into phones and tablets in a big way this not only could be a good deal for them -- but they could also now supply both HARD and SOFTWARE to businesses.


If a successful company like Ms is thinking of ponying up 22 billion dollars (US) then there's usually a good reason.

Enc latest market data for Ms (MSFT)

Worth watching this one --especially as The Fruit Company is missing "Earnings expectations" which is "Market-ese" means they are going down the tubes big time.

Cheers
jimbo
 

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Wow! This is intense. I'll bet other OEMs are sweating bullets over this one. If MS gets their fingers in the pie far enough it means hardware at a more reasonable price. I love competition. :)

I'm sure that was a typo, Jim. It's 2 billion MS might be contributing.
 

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Wow! This is intense. I'll bet other OEMs are sweating bullets over this one. If MS gets their fingers in the pie far enough it means hardware at a more reasonable price. I love competition. :)

I'm not sure how that's going to happen. Remember, Microsoft pretty much bailed out Apple years back and look how that's turned out for Microsoft.
 

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Interesting move.

As part of the deal “Dell would agree to use Microsoft's Windows software to power the vast majority of its devices”


The other oem's won't be pleased.

MS could have a real problem - unless it has something up it's sleeve to appease them.
 

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Interesting move.

As part of the deal “Dell would agree to use Microsoft's Windows software to power the vast majority of its devices”

The other oem's won't be pleased.

MS could have a real problem - unless it has something up it's sleeve to appease them.

Dell already uses Windows for the vast majority of its devices. The only issue will be is if Microsoft reduces licence prices to Dell, but that may cause other issues.
 

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From Wintel to WinDell.

I don't think Silver Lake will invest more than 2B, a buyout or controlling interest would cause legal problems.
 

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Sounds like MS has a pile of cash burning a hole in their pockets.

Yes, with $66 billion in cash reserves, $2 billion is just pocket change. I'd buy the whole lock, stock, and barrel to give the other OEMs really something to sweat over. iFruit and Google too. :D
 

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I'd prefer Microsoft to give some of that cash hoard back to us stock holders, instead of blowing it on another buy out. They haven't had a very good track record when it comes to mergers and acquisitions.
 

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I think they made a profit on their Apple investment.
This Dell investment would give them better hardware resources and price structure for the hardware they are currently manufacturing.
 

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Hi there
Again UNDERSTAND the Market.
If they stuck that cash into a Bank it would earn a paltry 0.25% interest. Buying a profitable business would yield a much bigger return -- Sales of PC's might be slowing but there's still an awful lot of sales.

As I keep saying in Investment the Market doesn't care a TOSS about LAST YEARS results -- they are only interested in FUTURE possibilities,

Taking a share in Dell makes sense -- they get their pile into the hardware scene, and they (hopefull) can spin this off later for a handsome profit -- basically like the "Venture Capitalist" firms do these days.

Take BMW these days. I don't think there's anybody out there who says they make rubbish products -- in fact when you think that all BMW not all that long ago was making Single cylinder 300 CC Isetta's you can see how far they've advanced -- But even a company like BMW that is almost synonomous with quality and well crafted "Teutonic Engineering" actually makes MORE MONEY from the FINANCE on their cars - they have their own Finance division - than they do on the CARS themselves - but nobody fortunately have suggested BMW turns itself into a Bank. !!

Businesses have to look for other ways of generating income streams - some of which might seem a long way from their core product.

Enc screenshot of BMW Isetta.

Cheers
jimbo
 

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