Microsoft Corporation (MSFT) Slides, Begins Talks With Dell Inc. (DELL)

What could the new deal mean for Dell and Microsoft? For Dell, it would serve as an interesting twist in the supposed quest to take the stock private. In the midst of a lagging PC market, Dell has been hit particularly hard, seeing sales drop nearly 21% in the fourth quarter year-over-year. Still, some analysts believe that the purchase could prove as a sort of insurance policy for Microsoft, giving them the ability to strengthen one of the companies that sells their product.

For now, neither Dell nor Microsoft seem to be in great positions, and neither of them has squeezed their way into my portfolio.

The article Microsoft Slides, Begins Talks With Dell originally appeared on Fool.com and is written by Michael Nolan.

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