Microsoft and Dell: Microsoft Helps Itself with Loan to Dell

Microsoft and Dell: To many, it may not make sense for Microsoft Corporation (NASDAQ:MSFT) to make a loan to Dell Inc. However, this is exactly what the company plans on doing.

In short, Dell needs the money so its founder can buy back the company.

Microsoft Corporation (NASDAQ:MSFT)While this sounds like a great story, you are probably thinking one thing: why does Microsoft Corporation (NASDAQ:MSFT) need to get involved?

Simply put, it doesn’t want anything bad to happen to Dell as the company continues to fight back advances of Google Inc.’s Android operating system. In other words, Microsoft needs Dell to be in good health to ensures its lead in the operating system market.

Here is a recent excerpt from a Reuters article:

“Microsoft Corp is playing defense with a $2 billion loan to help Dell Inc’s founder buy back the world’s No.3 PC maker as it seeks to shore up support for Windows and beat back the march of Google Inc’s Android.”

“The investment in the landmark $24 billion buyout led by Michael Dell marks the latest step in Microsoft’s plan to gain more influence over the hardware supply chain – a departure from the decades-old, software-centric philosophy that helped it dominate the computing world but is now increasingly under threat.”

On the surface, this looks like a good idea for Microsoft Corporation (NASDAQ:MSFT). Obviously, the higher-ups at the company believe this to be the case.

However, there is one thing to consider: is Microsoft going to alienate other computer manufacturers while trying to get closer to Dell?

In the same Reuters article, Andrew Bartels, an analyst at Forrester Research shares his opinion:

“It doesn’t mean it’s a bad move, but it’s definitely defensive. Microsoft is realizing it must be much more engaged in the hardware business than it used to be, it needs to be making bets and forming relationships.”

If forming relationships is what Microsoft Corporation (NASDAQ:MSFT) is trying to do, it is safe to say that a $2 billion loan is a great place to start.

Check back here for more updates on Microsoft and Dell.

DISCLOSURE: I have no positions in any stock mentioned.

For more news from MSFT, visit the following pages:

Microsoft Office 365 is Staking Claim in the Retail Space

Windows 8 is Not Moving PCs – We Have More Evidence

Billionaire Kerr Neilson Loves Microsoft as a Cheap Stock

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!