There was some excitement around Dell’s stock today as a circuit breaker was tripped that halted trading when rumors began circulating that the company may…
Dell might go private, and Microsoft wants to help. The Redmond company apparently wants to loan out up to $3 billion as a “mezzanine” investment, which could convert to equity if Dell fails to pay Microsoft back. And that’s about it—for now.
Dell is already onboard with Windows 8, and adopting new tech from Intel, so Microsoft’s possible involvement won’t do too much to change the trajectory of Dell. If anything, once (if) Dell does go private, Microsoft as an investor could have influence over the PC-maker’s future business. The PC landscape is changing; Microsoft clearly acknowledges this with the existence of the Surface. If the company becomes involved with Dell, who knows of what possibilities may arise.
If Dell wants to reinvent itself, Microsoft could have some pull, which—the thinking goes—could hopefully lead to more sales for both companies. So Microsoft wants to invest, and if worst comes to worst, the company could make a bit off of the deal. But is Dell even a solid investment in the first place?