You're watching...
FBN’s Charlie Gasparino with the latest developments in Microsoft’s potential investment in Dell.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Thank -- -- deal for -- changing every day now there's talk of a new investor fox business's senior correspondent Charlie Gasparino.
Courts have this story -- I don't think this.
The -- -- Microsoft and I think it's you know there's one of many investors I I think it's I think it.
Detracts from a bit bigger story which which is whether guild will actually become a private company whether they could convince shareholders.
To be a private company and I could tell you.
I know a lot of bankers are leaking stories and it's common at the end of the week I can tell you that bankers wanted to come at the end that we get this thing nailed down.
But they have to come up put a proposal.
Then they have to presented to shareholders than they have to vote on it and I get paid based on the feedback I'm getting.
Is that shareholders are skeptical of the thirteen dollar share price what does that mean well maybe they have to sweeten it.
I can't tell you where the point of no return is where if you -- too much.
It's not economical for Dell Michael Dell -- and civilly to take -- private they don't think they can sort of -- -- -- it's too much money than they don't think they can get.
Basically.
The money that they're gonna cash out in five years you know that usually the case right where you take it private.
In five years' time you you've sort of build build value as a private entity retool retool the company and then go public again.
You know there comes a point where if you raise that price too much none of that makes sense I don't know where that is but I can tell you this if you talk to their shareholders.
People know -- realtors and bankers when -- when they are really leveling with you.
They will tell you that this is not a slam -- -- is still needs that despite Microsoft being in there.
This still needs shareholders and that's the biggest hurdle.
Got it got the hurdle but you don't think it's interesting that Microsoft would flirt here considering its software interest in hardware or.
There's really nothing for Microsoft to gain other well in a financial investor.
Because if they want to listen I do think that Microsoft wanted to a joint venture with these guys I mean that's what -- told by bankers -- that is kind of like.
What's in the background a GB is of some sort of Microsoft's and all sorts of different computer tech and Biotech expert you know what I'm saying night.
I I don't know how I got onto the story I just cut.
I think a story -- have been blowing and I don't I -- how bad I don't I don't really care they go private it's it is an agency story from a market standpoint.
I think -- just a from a shareholder standpoint guy I really don't care if -- private and I can -- Morgan Stanley.
Gets merged with a for the big British bank that I care about this.
Why this is adjusting to me is why you should be watching the Fox Business Network is because.
Here's a potential for shareholders get ripped off here.
That is it if you.
You Floyd -- great writer for -- New York Times laid out pretty pretty succinctly in a column recently.
If you if you -- long term investor in in in in -- you got paltry returns and you can get a lot of dividends.
But if -- a person that cashed out if you were part of that those buybacks you did pretty good over the years if your company insider but options -- pretty good over the years.
Long term shareholders have not been rewarded by this -- company.
And the question is will they be rewarded by a thirteen dollar share price tell -- a lot of people say no you know why can't.
Michael don't want to do something great with this company.
McKinney -- as a public company well I mean an end -- -- should get -- and you -- to get nervous you've seen the original founder of a company coming in wanting to take their property back with right.
Private equity firm and you know Microsoft involved Valentin.
He wanted to write it the other getting it -- it kind of it kind of makes a deal three billion dollars in Microsoft which sits on gazillion to cash right.
If that's what they put it is not a lot I mean if they have a chance for joint venture -- a private company if it's not it.
This doesn't look good for the average investor -- a lot of shareholders for shareholders what would you be satisfied at a fifteen without us going -- I mean I -- I don't know enough about the company.
I don't know enough about you know how long you know listen -- -- you look at the track record of the stock -- its.
It's not been -- very wealthy stock you'd be hung in with this company the question is is thirteen dollars worth it and you know dot com with him common sense winds icing -- -- with the shareholders do.
OK Charlie Gasparino as always thanks always thanks a lot our -- -- he has led a cracked out of insider trading about more than.
150.
Cases tied to the financial crisis but before SEC's enforcement chief Robert it is obvious depth interviews talking -- -- about Peter Barnes.
You inside look at the SEC is coming up.
