January 23, 2013
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With Dell trying to go private by raising $22-25 billion has been talk of a lot of news feeds.
Microsoft has also jumped in to the fray with some news source quoting that they want to “invest” about $3 billion.
MS-Dell have long been into partnership for as long as Dell has existed to sell MS Windows on all its systems.
All OEM who sell desktops/tablets/PC pay a huge revenue as licensing fees to MS.
MS has also jumped into fray of building its own hardware(Surface).
Now imagine this MS has $66 billion in cash reserves.
Dell is going private with $22 billion.
Once private Delll may want to shelve off the PC divsion.
HP wanted/wants to shelve off the PC division.
HP is no. 1 in PC market & Dell is no. 3.
Now if MS buys out both the org say for about $30 billion it would be giant behemoth overnight!
It can break off ties with all other OEM’s and be the whole and sole in the market just like Apple but much bigger!
No one can ship it bundled with their devices.
The margins for MS would be huge, which no OEM can beat!