Microsoft Discusses $3 Billion Investment into Dell

Microsoft Could Invest $3 Billion into PC Maker Dell

by Anton Shilov
01/22/2013 | 11:50 PM

Microsoft Corp. is in talks to invest between $1 and $3 billion into Dell as a part of the widespread efforts to take Dell private. The reasons why Microsoft needs a rather significant stake in a large private computer maker are not obvious, but perhaps, Microsoft wants to ensure that the company continues to use Windows operating systems across all of its product lines.

 

As reported last week, Silver Lake, a private equity firm, is working with numerous potential investment partners to acquire Dell and take the company private in order to transform it into a more competitive company. One of potential investors appears to be Microsoft, who can invest between $1 and 3 billion into the PC giant, reports Reuters news-agency citing CNBC. Microsoft reportedly wants to provide the capital in the so-called mezzanine financing, which is a hybrid of debt and equity.

Microsoft late last year announced plans to become a software, hardware and services company. As a result, Microsoft essentially starts to compete not only against its natural rivals on the software market, but also against its own customers in hardware and services businesses.

Microsoft, Dell and Silver Lake did not comment on the news-story.