By now most of you may be aware of Dell’ plans to go private. This private business is no easy trip. In fact, according to Dell, the whole adventure will cost anywhere in the region of $22 billion.
CNBC let the secret out in a short tweet saying that Microsoft is part of a group that is currently negotiating a significant investment in Dell. How significant? Let’s say anywhere up to $3 billion:
“Microsoft in talks to invest $1B-$3B as part of Dell leveraged buyout; investment seen as mezzanine financing, likely in form of a preferred.”
Sure, nothing is set in stone yet and both companies are yet to release an official statement on this matter. Still, even a $3 billion investment will not give Microsoft a majority stake — it is but a significant share that will help both companies work closely together.
How close? This is a question on everyone’s mind.
Some were of the view that Microsoft may want to take control of the computer manufacturer, but according to some Wall Street Journal insiders, the Redmond company has no plans in getting involved in Dell’s day to day business.
In fact, it only wants to make sure Dell continues using Windows on most of its devices. Dell, as one of the largest computer hardware vendor uses Windows, but a deal like this could further help Microsoft in its quest to become a devices and services company, as CEO Steve Ballmer envisions.
Nevertheless, we should find what is cooking very soon, as negotiations continue to advance.