Microsoft is reportedly considering placing a significant investment in Dell, following reports that the computer maker is attempting to go private. Unnamed sources have told CNBC that Microsoft may be preparing to take a stake worth $1 billion to $3 billion, though the leveraged buyout is still expected to be dominated by a private equity firm.
Dell has struggled to maintain its status as a leader in the consumer PC segment, though it has achieved some success in refocusing on the enterprise market. Private ownership is expected to provide more flexibility if the company continues to change its strategy.
The first reports surrounding the possible buyout pointed to talks between CEO Michael Dell and private equity firm Silver Lake Partners. The Dell founder is said to be willing to provide his own stock, worth $3.6 billion, with the aim of raising enough capital for a total purchase price between $22 billion and $25 billion.