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back to article Microsoft to pump cash into Dell buyout deal?

The word on the street is that Michael Dell and his rich friends are having an easy time finding the many billions of dollars needed to do a leveraged buyout of the PC and server maker and take it private, especially now that Microsoft has entered the picture with as much as $3bn to invest in the deal. According to a report ( …

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Anonymous Coward

Why go private?

Why go private? Everybody, Facebook included, is making lots of money on the stock market!

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Anonymous Coward

Re: Why go private?

For a private company, floating is good. Just ask a banker. (And they won't be swayed by how much money they can make in advisor fees when you float, oh no. The very thought of it!)

For a public company, going private is good. Just ask a banker. (And they won't be swayed by how much money they can make in advisor fees when you go private, oh no. The very thought of it!)

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Silver badge

Re: Why go private?

The depression is on, the stock is very cheap. Buy it and wait for the uptick in profits in the next cycle.

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Anonymous Coward

Re: Why go private?

Probably the more pressing issue for Dell at the moment is that there is very little profit in the box making IT industry. Dell are going to have to make some pretty big decisions soon, such as how big Dell want to be, where Dell want to be, which market(s) they want to focus on. This may mean downsizing Dell or it may mean moving Dell's manufacturing. It may also mean outsourcing or off-shoring elements of Dell. It will be far, far easier to carry out this work, without shareholders demanding votes and threatening lawsuits for every decision that they don't like.

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Anonymous Coward

Re: Why go private?

You do realise that there are real costs involved in being listed.

The main advantage for the company of being listed is the ability to access cheap cash through selling stock ... but the downside is that it dilutes your own holdings and shifts power into the hands of the stockholders.

The main advantage for the original owners of being listed is that it crystallises the worth of their efforts, and leaves them with millions or in the case of Facebook billions.

It's also great for stockholders if there are big dividends or the stock is rising.

However, there are controls on what a listed company can and cannot do.

and anyone of course buy your stock ...

In a situation where the immediate future looks bleak ... i.e. small or no dividends ... where the future looks like it'll be a shrinking share price ... and where you really need to restructure to address a changing market ... being listed can be a death sentence.

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Thumb Down

Mirky waters?

Nevermind Dell... Is Microsoft, back to creating corporate ties in the name of their own share price?

Once WIntel...now WinDell...else possible WinSell?

Now, if this "news" isn't really about _saving_ share value, then you can really tell Microsoft is behind FOSS, with a knife. Well, bedding with Dell puts a knife in their hand regardless.

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Thumb Down

Re: Mirky waters?

Not exactly the fellow I would like to go to bed with.

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Anonymous Coward

Re: Mirky waters?

Talk about out of the frying pan and into the bowels of hell!

I'd much rather my chances in a huge tank full of blood-sucking parasites, investment bankers, piranha, asset strippers, crocs, naked shorters, etc, etc... than trapped in some dark, lonely place with Balmer... trying to make a go of a "deal" with the evil empire. Can't see that ending well ;-)

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Anonymous Coward

Dell Linux Machines

Microsoft: evil laugh

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Anonymous Coward

Alas, poor Ophelia, we hardly knew ye....

http://www.infoworld.com/t/thin-clients/meet-ophelia-dells-50-plug-in-cloud-based-pc-challenger-211031

http://arstechnica.com/information-technology/2013/01/is-dell-looking-to-kill-pcs-with-project-ophelia/

Alas, poor Ophelia, we hardly knew ye - taken from us before you were even born.

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Has Microsoft won the war against alternative operating systems?

Every time I think it can't get worse it does. Looks like the only hope of mainstream PCs being sold with Linux is going to be from small companies. That's little to none.

I remember a time when congress didn't support monopolies.

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Linux

Re: Has Microsoft won the war against alternative operating systems?

No, far from it.

Look at Android, it's running rings around Windows Phone.

Ubuntu is also far more usable on both the desktop and servers...

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Re: Has Microsoft won the war against alternative operating systems?

This does not bode well for #projectSputnik

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No need to worry

It's a Ballmer with his wallet flailing around like wounded elephant. His multi billion-dollar purchase is bound to turn to shit in about a year.

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Re: Has Microsoft won the war against alternative operating systems?

"Ubuntu is also far more usable"

That's sad, I've seen Ubuntu.

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Anonymous Coward

And the march continues

For Microsoft becoming just like Apple, but without the success. {}:>))

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Anonymous Coward

If you can't sell Windows 8 software

buy into hardware and force it's way in..

Job done.

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Anonymous Coward

Re: If you can't sell Windows 8 software

Microsoft has always forced its way in. It never needed to buy any of the hardware companies to hold them in its iron grip. Don't know why it is doing so now.

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can someone check on Eadon?

It's been over an hour and still no sign.

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Anonymous Coward

Re: can someone check on Eadon?

Probably lying on his floor flailing wildly in the throws some ghastly apoplectic fit. If anyone knows his address, please call the poor sod an ambulance.

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WTF?

Why doesn't...

Why doesn't Microsoft just buy up all outstanding shares itself.

Dell will be one of it's biggest customers anyway.

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Anonymous Coward

Re: Why doesn't...

Methinks even US regulator types would raise an eyebrow at that... probably much more palatable to quietly slip a subversive foot into an obligingly parted backside.

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Anonymous Coward

Re: Why doesn't...

What's there to raise an eyebrow at? MS don't make physical computers and Dell don't make software, or not much at least. The regulator would only raise an eyebrow at MS buying something like direct competitor in software, for instance if MS bought RedHat or Apple, you could be sure there would be some regulatory investigation, if they bought up HP's Proliant division there would be no need for an investigation.

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Then opposite of Victor Kiam.

He loved the Remington razor so much he bought the company.

Dell hated Windows 8 so much Steve Balmer bought that company.

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They should shut it down and give shareholders their money back

Michael Dell was right.... He should listen to his own advice

http://news.cnet.com/2100-1001-203937.html

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What will the regulators make of this?

Having seen the affect of letting Oracle buy Sun.

What will the regulators make of letting a Monopoly SW supplier get into the HW business?

Sadly Microsoft's current "partners" aren't in a position to say anything. When Microsoft say "Jump" you don't even think about whether they'll ever to say "Land"

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Re: What will the regulators make of this?

It's only a $3bn share of a $22bn capitalisation. Can't see the regulators get too excited.

Now, if only Dell's old 'pal' Joe Tucci felt inclined to weigh in......

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Headmaster

Re: What will the regulators make of this?

MS is hoping that regulators will never see the "effect" of letting Oracle buy Sun!!

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What about Google. As of 7/2012, it had US$50Bn in the bank...

http://www.forbes.com/sites/timworstall/2012/07/19/google-doesnt-know-what-to-do-with-its-money-but-dell-does/

Google could REALLY (even moreso than with Chromebooks, laser goggles, etc.) be in the hardware business if it buys up Dell:

http://dealbook.nytimes.com/2012/07/13/a-show-and-tell-with-googles-hardware/

http://mobile.businessweek.com/articles/2012-05-22/its-official-google-is-now-a-hardware-company

But, what would Google do with Alienware?

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Anonymous Coward

Google knows enough about computer hardware...

...to steer well clear of Dell. Next you'll be suggesting that they buy HP's PC division!

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And then, unexpectedly...

Apple swoops in and buys Dell, then dissolves it, to the uncanny background sound of Steve Jobs laughing from the grave...

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Joke

Well, well

Dell (the man) you should have kept Dell (the company) private from the beginning.

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If MS want to get into the hardware market then suppose it makes sense for MS to buy in to Dell as they are big player.

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Zap

Clever

This is clever, right now Dell shares are hot on the anticipation of a deal, shares can be sold while the price is up and bought back later at a discount when it falls through. Meanwhile the company has capitalization.

In my experience when a company wants to take itself private it is for one of two reasons; some bad news that would erode their share price or an anticipated sale of some or all of the company.

Only MD and his investors know the true story, meanwhile it is in play and there is money to be made or lost.

What Dell has shown is that it is one of the best at just in time manufacturing, which has helped it protect margins.

One thing is for sure, Microsoft has no interest in buying Dell, that would kill it's relationship with other OEM's, a shareholding on the other hand gives it influence.

Apple is NOT going to buy it, Apple works in Niches, yes selling overpriced kit to technophobic idiots is still a niche even if it leads to some killer products.

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Unhappy

Dell buyout by Mircrosoft

I am a Dell user should I be worried about this buyout by Microsoft. I am thinking of up grading my laptop to a Dell desktop in the future will Dell be around to buy one they have great customer service.

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