Well, M$ is just going to be a creditor, not a shareholder in the new Dell. That’s good unless Dell dies under the burden of debt. If Michael Dell can revitalize the company with enough growth to pay back the debts, Dell can finally be free of “conventional wisdom” that locks Dell into Wintel.
“The transaction will be financed through a combination of cash and equity from Michael Dell, cash from investment funds affiliated with Silver Lake, cash invested by Michael Dell’s investment firm, MSD Capital, and a $2 billion loan from Microsoft (MSFT_). The deal will also be financed by a rollover of existing debt, and debt financing from Bank of America Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets.”
This is another form of diversification for M$ and it should not interfere with M$’s relationships with other OEMs. If I were Dell, I would pay back M$ ASAP before M$ sets the hook.