How Does Microsoft Fit Into Dell's $24.4 Billion Buyout?

81

Comments

+ Add a Comment
avatar

willie be hardigan

You are full of yourself and your life is questionable.

avatar

_amass

sooo...will he?

avatar

Tport

thanks man

avatar

zbran32

The idea that “Microsoft loaned 2 billion dollars to Dell” is a good idea in my mind for Microsoft in the sense of a long term investment. Dell wants to be private, which means “freedom” from shareholders opinons. Michael can run the business the way he wants it to be ran now including products co-op with Microsofts windows 8. If you look at Nokia's recent undergo with Microsoft reveals that the joining of businesses can be beneficial. Microsoft made the right choice.

avatar

willie be hardigan

One reason might be that Microsoft wants their software and hardware to sell better. Maybe as a long term effect if Dell was to come back into the stock market strongly they might give Microsoft first dibs on stocks.All in all I have no idea what Microsoft has up their sleeve on this this one.

avatar

Tport

inappropriate name.. grow up

avatar

Magician_Houston

I think that Dell should have just convinced the board to accept a long term gains instead of buying out the stocks just so they have a one hundred percent control. Twenty four billion and four hundred million dollars is a lot of money to pay back. Because of this debt they can now run the company the way that they want to. Which on the other hand is what they were originally doing, but with answering to shareholders. I think they should have of just convinced shareholders that long term gains would help the company more than short term gains. I believe that it also benefits Microsoft’s Surface with the help of Dell.

avatar

Tport

AWFUL COMMENT

avatar

npatel9170

Microsoft’s two billion dollar loan to Dell was a smart choice. Dell needed to become private so they can have more freedom to innovate. Dell can now think of long term profits and not short term profits that the shareholders want. I think it is in the best decision for Microsoft to help out companies that are committed to innovating the computer industry and helping it grow. If Dell can come back and bring something new in the future, Microsoft will gain benefits as it will most likely to the Dell’s operating system in the future of Dell computers.

avatar

Tport

AWFUL COMMENT

avatar

ItsG0TT

BEST COMMENT HERE^

avatar

Magician_Houston

seems legit...

avatar

Nick263

I believe Microsoft wants to see the PC ecosystem flourish but only for them. Microsoft probably wants Dell to sell more PC’s with Windows 8 since it took a hit with the new product. Microsoft did the same thing to Nokia to gain a foothold in the phone ecosystem. Microsoft may look like it’s trying help Dell but they have their own intentions and it seems they will remain unclear for now. What does Dell stand to gain from this? Just being a private company? I think Dell has some ideas of their own but I’m unsure what they are.

avatar

aeloit

Well, with Dell going private, Microsoft has paid a 2 billion dollar loan to help them buy the stocks. So, why would Microsoft want to help Dell out in going private? Microsoft is trying to get into the front lines of actually manufacturing computers. With the poor production of Windows 8 machines, it seems like Microsoft is trying to get more in depth with the production of the systems rather than letting others try their hand at it anymore. With Surface, and now Dell, they can start to be more direct with their ideas in computers that have their operating system on it.

avatar

Tport

*thumbs up*

avatar

Zach329

In a personal opinion, I think Microsoft’s investment in Dell’s $24.4 billion buyout is a good move that will result in long-term results. Dell has been a good computer manufacturing company but has gone a bit downhill lately with modern competition. It will take some time for them to catch up to the competition or even exceed them, but all in all it should result in a good and appreciative outcome. It is still unknown on what Dell has planned to come in the future now that they are privatized. I feel once Dell has regained their ground and done some innovation to their products, I think Microsoft and Dell will be major partners and the result will have consumers rejoicing.

<(^.^<) <(^.^)> (>^.^)>

avatar

RUSENSITIVESWEETNESS

Ballmer is the spitting image of Peter Boyle in Young Frankenstein.

Tell me I'm wrong.

PU IN AH DA RIIIIZZZZ!!!

avatar

Gezzer

I predict that companies going private will start to increase.
Why? Because being publicly traded isn't always in a companies best interest. Maximizing stockholder value often forces a company to concentrate on the short term instead of creating a healthy vibrant company with great long term prospects.
What happened with THQ is a prime example.
They were trying to save the company but couldn't because their IP had more intrinsic worth and to maximize the creditors value the company had to close.
Pretty much sucks for anyone that lost their jobs when THQ closed. But they're not important the investors are.

avatar

cmasupra

I personally think Microsoft IS going to ask Dell to make the Surface (and other future hardware) for them, but with Microsoft branding. It's the same things Apple does: Foxconn makes the iPhone with Apple branding.

I see this as a friendly buyout. Microsoft is basically buying Dell without needing to deal with the FCC or anyone else.

avatar

OtakuReii

I agree, we should look for Microsoft branding, and also I assume that Microsoft are simply doing this to put themselves at a higher position with Dell. Their looking for long term things. They want their computers to sell better and their Operating Systems.

avatar

Electrik

I agree. Look for Microsoft-branded PC's in the future.

avatar

anc51699

I'm sure we'll see more hardware coming from them in the future. The surface was just the beginning, but I doubt they will try to ruin other OEMs in the process.

avatar

markstrelecki

My experience recommending, purchasing, configuring, deploying and repairing Dell PCs has, for many years, been straightforward and without undue problems. Dell was the first PC maker I could go to to find working XP drivers for desktops and laptops that originally shipped with Vista and 7. Sure, I can do my own research and lookup PnP codes and download multiple versions from a variety of sources, but having a manufacturer's sanctioned and supported "down-level" drivers is a genuine treat. It meant I could get to work faster and more smoothly than doing it with other makes and models. Michael Dell has been an enterprising and successful businessman since his days in the University of Texas at Austin and PCs Limited. This represents the next chapter of his American success story and I, for one, am excited by the prospects. Hey dude, you ARE getting a Dell!

Mark Strelecki
ATLANTA, GA. USA

avatar

Panwo1

I am curious to see what happens between them. With Nokia it was more obvious,; with Dell, not so much.

avatar

Nastyman

I think Microsoft and Dell are building a walled garden like Crapple did, so in the future if you want to run windows you will have to buy a Dell PC to run it on.

Nasty

avatar

anc51699

Microsoft isn't stupid. You will see Microsoft-branded PC's/Hardware in the future. Will they try to kill or ostracize other OEM's in the process? Of course not, why would they do something that stupid? That would be the equivalent of the company throwing the noose over the heating pipe and getting ready to kill themselves. They would lose millions if not billions in doing so.

avatar

Jox

"That's a tough pill for shareholders banking on a long-term return to their investment, especially ones who purchased stock back when it was trading at around $25 (you have to go back to 2008). They've seen their investment trickle downwards ever since, and are now being told it's game over, here's your money and thanks for the pie."

----------

Pardon my ignorance, but I'm not a stock broker; what happens if shareholders do not wish to sell? The above statement makes it sound like they don't have a choice, but that seems to fly in the face of logic.

-Jox

avatar

Gezzer

Don't quote me on this because I could be wrong but I think Dell becomes de-listed once the buy back is completed.
In other words Dell's stock is no longer traded and becomes worthless.
So I guess a person could hold on to the stock on the off chance Dell will become a publicly traded company in the future. But no dividends, or any collateral worth till that happens, so it's pretty much take the money we give you and/or GTFO.

avatar

davelray

Close but not quite. They will set an acquisition date, you'll be sent a pile of paperwork to fill out and notarize and send back. Then you'll get a check. There is no holding onto the stock as it will be canceled. If they go public again, the current stock will have nothing to do with the new publicly traded stock. The stock at that time will be newly issued. It doesn't matter if you "do not wish to sell" as the stock WILL be canceled. So your choice is lose your money altogether, or take what they give you.

avatar

commandrew

Ha, I believe this is all about Windows 8. PC manufacturers and consumers, especially PC gamers, hate Windows 8? MS will just loan 2 billion dollars to help out the former, then release one of their many console mega-hits to PC (Halo 3) to appease the latter. Well played.

avatar

MaximumMike

>>Do you think Microsoft has a play beyond its official statement?

Of course they do. No one invests 2 billion dollars into something without expecting a huge return. It's possible that this venture could help reestablish Dell as the #1 PC maker. And if that happens MS could have a big pay day in any of the various scenarios outlined in this article. Besides, I'd have to say that anything that bolsters PC sales is good for MS's long term future.

Log in to MaximumPC directly or log in using Facebook

Forgot your username or password?
Click here for help.

Login with Facebook
Log in using Facebook to share comments and articles easily with your Facebook feed.