Categories: Tech & Society

Microsoft Looking At Financing $1-$3 Billion in Dell Buyout

Dell is closer to going private with Silver Lake Management LLC, and Microsoft Corp planning to provide part of the funding, people with knowledge of the matter said.

According to sources, Microsoft might invest $1-$3 billion with the group looking to take Dell private. Microsoft is talking to Silver Lake and Michael Dell, who are working on the deal. The Microsoft investment would be “mezzanine,” or some sort of preferred shares, says David Faber of CNBC. Mezzanine is typically debt that converts to equity if the debt isn’t paid back in certain period of time.

Silver Lake and Dell are negotiating a price in the range of $13.50 to $14.25 a share, said one of the people, who asked not to be named because the talks are private. Microsoft is discussing contributing about $2 billion for the deal, which could be announced this week, the person said.

Microsoft has been a very aggressive investor with mixed attitude. They have invested in Facebook, Barnes and Noble, Comcast even Apple to name a few.

University of Chicago Booth School of Business Steven Kaplan talks about Dell going private:

 

Prateek Panda

Prateek is the Founder of TheTechPanda. He's passionate about technology startups and entrepreneurship and enjoys speaking to new founders every day. Prateek has also been consistently regarded as one of the top marketing experts in the region.

View Comments

  • Wonder if Microsoft will go the Google way by purchasing a hardware company now that it is quite serious about launching Microsoft branded Windows phones and tablets.

    • It definitely is not a bad option considering that they are getting serious about their hold on this particular industry.

Recent Posts

All our eggs in one cloud: When AWS sneezed & the Internet caught a cold

The recent service outage that Amazon Web Services (AWS) experienced in the US brought several…

2 days ago

Can AI help manage the new threat to our environment caused by AI?

Can we make data centers smart and green? Warning about AI’s electricity consumption speed was…

3 days ago

New tech on the block: Fintech, crypto, cleantech, blockchain & cybersecurity

The Tech Panda takes a look at recent tech launches. Fintech: ICICI Bank & Visa…

6 days ago

Binance’s comeback: what the October 10 crash reveals about centralized exchange risks

Without further preamble, my position is simple: CEXs don’t just parasitize cryptocurrencies, tokens, and other crypto…

1 week ago

Geek Appeal: New gadgets & apps on the block

The Tech Panda takes a look at recently launched gadgets & apps in the market.…

3 weeks ago