Microsoft may invest up to $3 billion in Dell

Following last week's news that Dell is considering to take itself off the stock market via a private equity buyout, news now hits the wire that one of the companies participating in the deal may be Microsoft. CNBC heard the software giant is in talks with Silver Lake Partners and Dell CEO Michael Dell to invest $1 billion to $3 billion in a leveraged buyout of the Round Rock, Texas based PC builder. The news agency says a deal is expected to be struck before the end of the week.

While an investment from Microsoft is unexpected, it makes sense considering that Microsoft depends on personal computer makers like Dell to help sell its software products. Meanwhile, talks between Silver Lake Partners, one of the main sponsors in talks with Dell to help bring it private, and the special committee for Dell's shareholder are continuing and a deal is expected to be reached by the end of the week.