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.

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