The last week or so has been filled with rumors about the upcoming Microsoft Dell deal, with the hardware vendor reportedly planning to go private again, and Redmond showing interest in putting some money in the effort.
We already covered both stories in detail here and here, but a very brief outline of the issue is that Microsoft is willing to invest around $2 billion or more for the leveraged buyout, but in return wants a say in Dell’s future roadmap and key decisions.
While the details of the final buyout agreement are still being hashed out, Wall Street Journal, quoting unnamed sources, reports that this is a bit of a sticking point in negotiations.
This much is clear that with the lowly margins that PC vendors have to live with, Microsoft is interested in Dell for more than just making profit. Whether this means the hardware company probably will stop its Linux adventure and use Microsoft’s Window on majority of its devices.
Redmond obviously wants to ensure that its large investment does not go all for naught, and while this is a very reasonable approach, Dell is not overly enthused with the idea. Yet.
The current arrangement includes around 16 percent of founder Michael Dell’s stake in the company, Silver Lake partners and Microsoft along with $15 billion worth of debt financing from various banks.
Still, despite these hiccups, the deal is still on track to be finalized in the next few days.
