Microsoft Possible Dell Buyout

NathanE said:
The PC industry is changing. Dell are very vulnerable right now and they are expecting bad quarters this year. As is Microsoft. The two are considering consolidating so they can focus on a single vision for the post-PC era.

This has everything to do with next-gen hardware and PC form factors (i.e. tablets) than anything else.

I'd not be surprised to hear soon that Intel are getting on this deal too. Since Intel has just posted major profit declines as a result of poor PC shipments worldwide.
Click to expand...

I get the whole post-PC era thing, but why buy (admittedly they're not) something as big as Dell which has so much that MS wouldn't want.

What appears to be happening though is not an acquisition, as posted above.
 
Yea its not a buy out by microsoft as such as stated earlier. Its a private equity buy out worth $24billion that microsoft are considering putting $3billion into. Dell will still be Dell, but instead of being on the stock market and answerable to share holders they will answer to a private equity firm made up of a few different stake holders.
 
Considering MS have gone mobile focused and pretty much abandoned interest in desktop form factor, i would have thought MS would be looking to buy HTC or nokia rather than a server and desktop hardware supplier. I wonder what the general motive behind it is. Possibly their mobile technology patents, like the dell tablet with the screen that spins or the XPS 10 Tablet line of devices.
 
Last edited:
deadite said:
Yea its not a buy out by microsoft as such as stated earlier. Its a private equity buy out worth $24billion that microsoft are considering putting $3billion into. Dell will still be Dell, but instead of being on the stock market and answerable to share holders they will answer to a private equity firm made up of a few different stake holders.
Click to expand...

So basically, this gives MS much more say in the direct of Dell strategically? Sounds like common sense to me.
 
Basher said:
I get the whole post-PC era thing, but why buy (admittedly they're not) something as big as Dell which has so much that MS wouldn't want.

What appears to be happening though is not an acquisition, as posted above.
Click to expand...

Dell wants to be a private company again. Because the only way they see their public shares going is down. This happens quite frequently when a public company wants to fundamentally restructure its own business model. There's no point in being public when doing such things. So they're looking for investors to buy out their own public shares. Microsoft is apparently offering up to 3 billion, which will give them a nice shareholding in a newly privatised Dell, but certainly nowhere near a majority.
 
Redgie said:
Surely Microsoft could buy any large scale hardware manufacturer for this purpose, why pick one as high profile and expensive as Dell?
Click to expand...

Enterprise customer base possibly? If they buy into Dell, but don't buy Dell, they could position themselves into providing a full on end to end Enterprise solution? Though given the size of both companies I can't see it working.
 
I guess on a consumer forum people would think only in these terms without realising that isn't where these big companies make their money.

Dell is hugely successful in the enterprise space, their servers, blade centres and storage along with support contracts and then all the workstations that each employee needs now. Dell are the "go to" people for pretty much any corp, they have a good brand that everyone knows and does not associate with cheap tat but they are pretty damn cheap when compared to HP or IBM.
 
I think it should be made clear that Microsoft is NOT buying dell. they are considering being involved in part of a buyout that is going ahead with our without them. if they invest this means they will have some input into dells future however they have no intention of using this to launch the Microsoft-PC (at least not at this point).
 
Microsoft should really give up on the software business altogether, they have completely failed time after time yet their hardware products seem to be pretty good. The best products from MS seem to be the Xbox, intelli mice, keyboards, and mspaint.

I've never had an issue with my MS mouse for nearly 12 years now, can't say the same for their abysmal OSs over the years.

MS should buy dell and concentrate on making PCs, leave the software to others.
 
D.P. said:
Microsoft should really give up on the software business altogether, they have completely failed time after time yet their hardware products seem to be pretty good. The best products from MS seem to be the Xbox, intelli mice, keyboards, and mspaint.

I've never had an issue with my MS mouse for nearly 12 years now, can't say the same for their abysmal OSs over the years.

MS should buy dell and concentrate on making PCs, leave the software to others.
Click to expand...

Seriously? Windows is still the dominant OS. MS Office is incredibly widespread and equally, if not more, dominant. Why in the world would they give this up? :s
 
Sudden said:
Seriously? Windows is still the dominant OS. MS Office is incredibly widespread and equally, if not more, dominant. Why in the world would they give this up? :s
Click to expand...

McDonald's is the dominant fast food purveyor, doesn't mean it's good.
 
D.P. said:
McDonald's is the dominant fast food purveyor, doesn't mean it's good.
Click to expand...

Basher said:
What do you mean by good? Good for who? Shareholders? Drunk students?
Click to expand...

This.

McDonald's is certainly very 'good' for the ones who have an interest in it given that it is generating a profit.

As long as the the businss is generating a profit, and in the cases of McDonalds or Microsoft, significant profit, why in the world would they decide to quit that part of it? So they can do something else and make less money?
 
You must log in or register to reply here.
Back
Top Bottom