Microsoft Investing $3B In Dell

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Just imagine of this story ends up being true. :eek: Thanks to octoberasian for the link.

Microsoft Corp is in discussions to invest between $1 billion and $3 billion of mezzanine financing in a buyout of Dell Inc, CNBC cited unidentified sources as saying on Tuesday. Private equity outfit Silver Lake Partners is trying to finalize a bidding group to take the world's No. 3 PC maker private, and has opened discussions with potential equity partners, sources familiar with the matter have said.
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Not just investing in Dell, but a buyout. I thought Dell would be worth a lot more than $3 billion. Am I missing something?

So is Microsoft planning on becoming a full solution provider?
 
CaptNumbNutz said:
Not just investing in Dell, but a buyout. I thought Dell would be worth a lot more than $3 billion. Am I missing something?

So is Microsoft planning on becoming a full solution provider?
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It is worth a whole lot more than $3 billion.

And MS has been propping up stores everywhere, and given their recent entry into the hardware side you'd figure that they are becoming a top-to-bottom type of company. They've been trying to mimic Apple so this would be just another step.
 
Nerd #1: Dear me. What are these things coming out of Dell's nose?
Nerd #2: Microsoft.
Nerd #1: Oh, shit. There goes the industry.
 
pelo said:
It is worth a whole lot more than $3 billion.

And MS has been propping up stores everywhere, and given their recent entry into the hardware side you'd figure that they are becoming a top-to-bottom type of company. They've been trying to mimic Apple so this would be just another step.
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I will quit IT if they go full retard like Apple.

Go be a trashman or something.
 
A bit more information in this article

It looks to me like Microsoft is trying to get a solid hardware partner, one of the best ways to do that is to own part of said partner.
 
schizrade said:
I will quit IT if they go full retard like Apple.

Go be a trashman or something.
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This is going to sound like a predictable cliché of a reply but I'm surprised you're still in IT.

Maybe best you don't look that deeply into how MS runs the shop behind the scenes :(
 
Sounds like it was leaked so that some nameless investors would make a quick buck off of any stock price increases...
 
I think this is a bad idea, lets ask what does dell offer, their entire business model revolved around incredibly hard core supply chain management. But no where in dells business was there ever delivery of innovative hot products or pushing the boundaries. Dell wins by splitting the difference between hardware savings and distribution and the price they charge as well as the difference between paying suppliers and receiving money from customers.

Dells issues lately have stemmed from the fact that they make NOTHING, other than supply chain efficiency they have little in the way of skills and competencies and others are catching on. MS needs to own an OEM, I mean a REAL OEM one that actually makes some part of computers so they can have some sort of vertical integration. Dells vertical integration contains nothing that MS cannot make them-self. Lets see buy shit from Asia, there how hard was that lol?

Once again if they get into this its going to make a bunch of competitors look at google and say what can you do for us on the desktop / laptop?

To recap, Dell is not a hardware partner you want because they don't make any interesting hardware. They have others make their hardware. Their design team offers nothing unique or interesting just bog standard products.
 
Microsoft: "Dell wai u no make RT tabletz?"
Dell: RT konfizzle stupids
Microsoft: *opens checkbook*
 
schizrade said:
I will quit IT if they go full retard like Apple.

Go be a trashman or something.
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MS won't go full walled garden. It hasn't worked for them in the past they are just trying to come out with products that will force their OEM partners to at least try a little bit.

This is an increadible buy for them, of course they would have to spend a metric ton more to become a partner in HP but this speaks volumes for how serious they are about how shitty their OEM partners are. Hopefully they do right by this investment.
 
I didnt read the article but over at Engadget they stated microsoft was a possible investor and might help privatize Dell. As I think Michael Dell wants to buy up the public shares.
 
Trimlock said:
MS won't go full walled garden. It hasn't worked for them in the past they are just trying to come out with products that will force their OEM partners to at least try a little bit.
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If not, then not for lack of desire. Their true intentions were revealed when RT was reportedly jailbroken to run unsigned ARM apps and they immediately stated they were "actively investigating".

The end-to-end control they enjoy with the Xbox ecosystem is something they'd LOVE to duplicate with Metro and the app store, and are trying their damnedest at with a transition to metro. The hybrid desktop/Metro nature of Windows 8 *for now* is just a stepping stone - the thin end of the wedge.
 
I fear for the Dell servers shipping with Linux or the "developer" laptop.
Also, any good quality products like the UltraSharp line.
 
odditory said:
If not, then not for lack of desire. Their true intentions were revealed when RT was reportedly jailbroken to run unsigned ARM apps and they immediately stated they were "actively investigating".

The end-to-end control they enjoy with the Xbox ecosystem is something they'd LOVE to duplicate with Metro and the app store, and are trying their damnedest at with a transition to metro. The hybrid desktop/Metro nature of Windows 8 *for now* is just a stepping stone - the thin end of the wedge.
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Part of me wants to believe you are being paranoid and the other wants to believe the logical part of your argument (every company would love to have a completely walled garden Apple has).

The whole point of Consoles are lock down in nature, I don't know/think MS has any intentions to re-create this. Metro is their user interface, which doesn't translate to "MS Stone Wall" either, their App store in Win8-x86 as it is right now is an easier way to get other software sold. At least thats how it stands right now.
 
Eh, theyve got end-to-end control of Metro and Metro apps. If it wasn't for the fact theyre getting a 30% cut of every app sold then yeah I'd be just paranoid because what would their incentive be.
 
*turns away from Inspiron 1505*
*puts XPS M1530 on charger*
*goes into living room with Mini 10*
*watches TV for a while, then goes into bedroom and opens Alienware M17x R4*
*reads article*
*explodes*
 
You guys realize microsoft isn't buying Dell. They'd just become one of many investors that would own a piece of privatized Dell. I believe the total deal would be in the $25B range so if microsoft invests $3B that would only be 12%. I hear the number might be closer to $2B which would drop their ownership down to 8%. Yes they would own a lot but far from the amount needed to exert control.

It's a great deal if MSFT can get some and they'd likely make a great return, but this is far from a takeover.
 
odditory said:
Edit

"Microsoft says it is restricting side-loading of Metro apps to prevent the spread of malware and to create a better user experience."

You see they're just looking out for us. They want us to have a good experience.

"In return, of course, it will also make 30% of all the sales in the store"

http://techcrunch.com/2012/09/29/wi...ro-apps-on-the-web-for-end-microsoft-answers/
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Yes I'm aware of this, but you supply a service you charge for others to use it too.

I think its a but steep to charger 30% though. I also think its a good idea to control their new future. At the same time I think they are trying to control too much too soon.

I dunno maybe I'm thinking happy thoughts on this whole thing.
 
Trimlock said:
Yes I'm aware of this, but you supply a service you charge for others to use it too.

I think its a but steep to charger 30% though. I also think its a good idea to control their new future. At the same time I think they are trying to control too much too soon.

I dunno maybe I'm thinking happy thoughts on this whole thing.
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To be fair to MS, if an app sells 25k the charge falls to 20% (for all sells made, not only after 25k).
 
Seventyfive said:
You guys realize microsoft isn't buying Dell. They'd just become one of many investors that would own a piece of privatized Dell. I believe the total deal would be in the $25B range so if microsoft invests $3B that would only be 12%. I hear the number might be closer to $2B which would drop their ownership down to 8%. Yes they would own a lot but far from the amount needed to exert control.

It's a great deal if MSFT can get some and they'd likely make a great return, but this is far from a takeover.
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This. For Dell to go private, they need money they don't have, so they get investors to buy part of the company. Moving to only a few stakeholders, they can de-list themselves from SEC. If MS wanted to become a PC maker, they would have done this before.
 
This is a solid business move. It even gives them a partner to build the new xbox. While i dont like one company controlling to many things the fact is this could be good for MS and possible force more innovation from the comeptition
 
Linux thinks they have problems persuading Dell to release a laptop or two with their distro now. Wait until Microsoft have a say on the board.
 
trudeak said:
This is a solid business move. It even gives them a partner to build the new xbox. While i dont like one company controlling to many things the fact is this could be good for MS and possible force more innovation from the comeptition
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Except Microsoft isn't controlling anything, and they never wanted to.

I really doubt Microsoft is even going to force Linux out of the line-up. They haven't been pushing for market domination in a long time and it's in their interest not to. Rather this just gives them a stronger foothold in the industry where traditional Windows is becoming rather irrelevant next to Android apps and iOS.
 
trudeak said:
This is a solid business move. It even gives them a partner to build the new xbox. While i dont like one company controlling to many things the fact is this could be good for MS and possible force more innovation from the comeptition
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Not to mention Dell's massive distribution line.

Sounds like a smart move by both companies.

Not sure why all the hatred for Dell/Microsoft or it is just the daily circlejerk? :rolleyes:
 
face2palm said:
Not to mention Dell's massive distribution line.

Sounds like a smart move by both companies.

Not sure why all the hatred for Dell/Microsoft or it is just the daily circlejerk? :rolleyes:
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Circle jerks don't normally end in massive nerd rage.

Or do they? :confused:
 
sviola said:
To be fair to MS, if an app sells 25k the charge falls to 20% (for all sells made, not only after 25k).
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Yes that's NOT a lot of money. Just think about paying 20% of you salary out to your employer for employing you.
 
pankkake said:
I fear for the Dell servers shipping with Linux or the "developer" laptop.
Also, any good quality products like the UltraSharp line.
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Servers shipping Linux? Is that to avoid the MS tax on servers that won't be running any MS product anyway (not terribly significant), or needed if you want support but don't want to explain that you can't run any windows tools (if so, Dell (business /govt) support has dropped drastically from what it used to be)? I'd fear for the sysadmin who can't install linux on his servers.

Dell consumer linux products have always been a joke. Chromebooks reloaded with linux are what you want anyway.
 
Wumpus said:
Servers shipping Linux? Is that to avoid the MS tax on servers that won't be running any MS product anyway (not terribly significant), or needed if you want support but don't want to explain that you can't run any windows tools (if so, Dell (business /govt) support has dropped drastically from what it used to be)? I'd fear for the sysadmin who can't install linux on his servers.

Dell consumer linux products have always been a joke. Chromebooks reloaded with linux are what you want anyway.
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Linux servers are very popular, particularly for big corporations with terminal boxes. Generally speaking, it's the smaller businesses that use Windows server products while cloud, HPC and terminal access is dominated by Linux.

You obviously don't pay for the software but you pay for support. Companies like Red Hat make billions that way
 
Wrench00 said:
Yes that's NOT a lot of money. Just think about paying 20% of you salary out to your employer for employing you.
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Think about producing a product, sending it to a retailer and the retailer keeping a 20% cut of the final sale price. You know, for running a store and stuff.

30 and even 20 percent has always seemed high to me for these digital stores, but it's pretty standard.
 
mesasone said:
Think about producing a product, sending it to a retailer and the retailer keeping a 20% cut of the final sale price. You know, for running a store and stuff.

30 and even 20 percent has always seemed high to me for these digital stores, but it's pretty standard.
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Or I can have a website and sell directly.
 
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