Dell Pops on Microsoft Rumors: Winners & Losers
NEW YORK (TheStreet) -- Dell (DELL) shares jumped 2.1% to $13.11 on Tuesday following news that Microsoft (MSFT) may invest as much as $3 billion in an eventual takeover of the struggling PC maker.
CNBC's David Faber is reporting that Microsoft may invest anywhere between $1 billion and $3 billion as part of a private-equity bid for Dell. The form of the investment would be mezzanine financing, which is defined as financing in the form of debt that converts to equity should the debt not be paid back on time and in full.
Shares of Microsoft ticked lower following the reports, off 0.39% to $27.15.
Google (GOOG) shares fell 1% to $697.51 as the company heads into a crucial earnings report after the close of trading Tuesday.
Analysts polled by Thomson Reuters expect Google to earn $10.49 a share on $12.3 billion in revenue this quarter, aided by a slowing decline in click-per-costs (CPC), a key metric for ads. Deutsche Bank analyst Ross Sandler believes this may be the case. "Reported CPC growth is on the verge of improving, mostly as Google comps the downtick that started back in 4Q11. Some investors use this metric as a proxy for improving mobile monetization, hence any improvement would be a positive catalyst," Sandler wrote in a research note. He rates Google shares buy with an $850 price target.Research In Motion (RIMM) shares soared, gaining 8.9% to $17.25 followings reports that CEO Thorsten Heins would consider licensing out BlackBerry's operating system, if it made sense. The German newspaper Die Welt questioned Heins what took Research In Motion so long to make a new operating system, and Heins explained the company had to make it future proof for the next 10 years. The prospect of licensing the new OS was brought up, as Microsoft does with Windows. "Before you licensed the software, you must show that the platform has a large potential," Heins told Die Welt. "First we have to fulfill our promises. If such proof, a licensing is conceivable."
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