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Rumor: Dell Itching to Buy a Company

By - Source: Tom's Hardware US | B 39 comments

Dell is sitting on a big stack of cash and looking to go shopping.

Several reports today say that computer giant, Dell has $10 billion to spend on an acquisition it will make in the coming months. According to WSJ, Dell officials have publicly said they want to do more deals, and an anonymous source has said CEO Michael Dell expects his company to acquire a "significant-sized company" in coming months, according to a person who has spoken with the CEO.

So where is all this money talk coming from? WSJ reports that on Wednesday, Dell sold $1 billion in bonds, adding to the $9 billion it already had. While the paper suggests that Dell wants to expand its data-storage and tech-services businesses, citing sources who have spoken to CFO, Brian Gladden. However, others are coming back to rumors from earlier in the year that suggested Dell might be considering buying Palm.

March was filled with reports about Dell’s plans to produce at least one, if not two smartphones. Word on the street was the company was planning on making one touchscreen phone and one with a full QWERTY keyboard. One would run WinMo and one on Google’s mobile OS, Android. However toward the end of the month, analysts began speculating that Dell may be considering a Palm buyout in order to get a jump on the smartphone market. However, now that Palm has launched the Pre, we can't imagine the company selling up before it gets a chance to see the fruits of its labor over the last couple of years.

Businessweek has a number of suggestions for Dell's mergers and acquisitions team:

  • Palm
  • Motorola’s phone unit
  • Affiliated Computer Services
  • BMC Software
  • Symantec
  • EMC

Which of these is most likely? Place your bets.

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  • 11 Hide
    neiroatopelcc , June 12, 2009 11:44 AM
    Let em buy GM - that'd solve a lot of problems - and cars could be ordered over the internet with whatever mods chosen in a drop down list - like their computers :) 
Other Comments
  • 0 Hide
    leafblower29 , June 12, 2009 10:44 AM
    I don't think its Symantec maybe Motorola? idk
  • 11 Hide
    neiroatopelcc , June 12, 2009 11:44 AM
    Let em buy GM - that'd solve a lot of problems - and cars could be ordered over the internet with whatever mods chosen in a drop down list - like their computers :) 
  • 2 Hide
    Upendra09 , June 12, 2009 12:51 PM
    ^^ good idea

    I think dell should spend their 10 billion into using better computer parts. every Dell has been sucky for me.
  • 2 Hide
    dextermat , June 12, 2009 1:08 PM
    Whatever dell is buying, im not touching with a 10 foot pole.

    yuk!!
  • 5 Hide
    tipoo , June 12, 2009 1:35 PM
    If anyone mentions AMD, I call dibs on being first to beat them violently.
  • 1 Hide
    Vettedude , June 12, 2009 1:55 PM
    I would buy Motorola. It could get them into phones real quick. Maybe Nvidia would be
    dextermatWhatever dell is buying, im not touching with a 10 foot pole.yuk!!

    Dell has gotten better (A little.) My Dell Studio Slim works just fine and my sister loves her Studio notebook.
  • 1 Hide
    Upendra09 , June 12, 2009 2:39 PM
    I hope they don't buy NVidia, they make it suck, just like Alienware. And if they bought AMD they would go out of business. I bet the EU is going to make an antitrust case if they buy anyone important, for monopolizing the market, like MS supposedly does w/ its IE8 bundle
  • 1 Hide
    Vettedude , June 12, 2009 2:42 PM
    Tom's needs an edit. I didn't want to put the Nvidia thing on my post.
  • 4 Hide
    hellscook , June 12, 2009 3:40 PM
    They could spend that money on good tech support. Sitting on that much cash and treating your bread and butter like crap is plain wrong.
  • 2 Hide
    Blessedman , June 12, 2009 3:42 PM
    I wonder if they could afford to buy ASUS. That would be about the wisest acquisition they could make. They need to buy someone that will help them innovate as this company is in desperate need to do something new and bold. Drive the market or be driven by it.
  • 0 Hide
    nachowarrior , June 12, 2009 3:50 PM
    tipooIf anyone mentions AMD, I call dibs on being first to beat them violently.


    you'll have to fight me for that right.
  • -1 Hide
    IronRyan21 , June 12, 2009 4:21 PM
    Dell sucks my pen15
  • 0 Hide
    rage machine , June 12, 2009 4:58 PM
    Dell has sold a few good PC's so long as you just stay within the predefined functions of that PC.

    in other words, if its in the office area, use it for office stuff only.

    however, i did have a huge problem with a Dell PC i was workin on with a friend. it was an XPS 7** [forget the model number, 760 maybe?] they had the processor i7 overclocked to about 3.7gHZ, way to high for system stability because it went down as soon as a game pulled up. After replacing the whole entire PC 1 component at a time, after i had told them it was their setup, they finally sent out a new one with the same problem. This new one they sent out was 3.7gHz as well, so we sent it back. The third one that came out worked like a charm, nice and fast. 2x GTX285's and 4 Gigz DDR3 ram. however, the processor was 3.4ghz OC'd.

    I really hope they be more careful next time i see anyone buy an XPS model, i mean honestly putting it at the tippy top of the performance graph is ok but if it even goes over an inch it falls into instability. I do note however that the 2 cards were placed right on top of eachother and ran about 84C in game. It was stable i guess, just a little warm. i dont understand sacrificing quality for the sake of a little extra noise in the system. that's mainly why i dont trust dell i guess.
  • 0 Hide
    tipoo , June 12, 2009 5:55 PM
    nachowarrioryou'll have to fight me for that right.



    We can share.
  • 1 Hide
    tenor77 , June 12, 2009 6:24 PM
    nachowarrioryou'll have to fight me for that right.


    To Party?
  • 0 Hide
    Anonymous , June 12, 2009 6:45 PM
    yeah I bought a dell inspiron 700m back in spring 2005 and its still chugging along after I have spilled paint and dropped it at least 4 times. The hinges are getting loose and the button that turns the monitor off broke off but the computer keeps trucking. None of my other computer have lasted this long. For me dell rocks
  • 0 Hide
    deltatux , June 12, 2009 7:22 PM
    Crap, do I have to add to the list of companies that I won't buy from because whenever Dell buys something that company turns to crap ... Alienware used to be good before the Dell buyout.

    Dell's crap and everything it buys turns crap.
  • 2 Hide
    anamaniac , June 12, 2009 7:55 PM
    BlessedmanI wonder if they could afford to buy ASUS. That would be about the wisest acquisition they could make. They need to buy someone that will help them innovate as this company is in desperate need to do something new and bold. Drive the market or be driven by it.


    Dell makes shit, Asus makes awesome tech...

    Though buying out or atleast buying as much of the company as they can, would likely help improve all Dell products substantially. Nothing a little R&D can't fix.
    However it would be a shame if they brought Asus to the same level of shit they are in themselves, and if they stopped investing in R&D.
  • 2 Hide
    starryman , June 12, 2009 8:00 PM
    That's what's wrong with capitalism when it gets too big. Big companies take excess cash and just buy other companies out. Buying companies don't add much value to a companies sustainability but more to enhance it's stock performance. Ultimately the consumer suffers with bloated companies hording cash, stalling innovation, and providing products that copy-cat or lackluster.

    Hey Dell! Since you have $10B to spend. How about taking some of that money to create good jobs for good people and not hire criminal inmates for contract work? Build new systems so you can operate in the US effectively and maintain strong profitability with little to know outsourcing. Spend more money on R&D to create more products internally rather than re-brand. Grow some balls and create novel software and even your own OS. There's a lot of money you can spend on yourself... stop buying other companies out. We don't need another M$ or IBM. What we need is an agile company that still has a decent reputation, cash, and for it to innovate organically.

    And if your run out of ideas - I have a couple of business plans for you to peruse. Seriously. PM me.
  • 0 Hide
    Anonymous , June 12, 2009 10:38 PM
    Why in the world would they buy BMC Software, a company that makes 80% of it's revenue from Mainframe? BTW, their new sales management is sinking that ship faster than the Titanic. Hopefully, for their sake, Dell will bale them out before the shareholders and board realize the shell game they're playing.
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