This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Call the Cops: Steve Ballmer's About to Murder Microsoft

NEW YORK (TheStreet) -- OK, this will make it sound like I've got a boulder on my shoulder (that's stolen from Springsteen, by the way, not Manfred Mann or Eminem), but, from time to time, it's tough not to wonder how initial media reaction to big tech stories can be so brainless.

Microsoft (MSFT) might pony up $1 billion to $3 billion to help take Dell (DELL) private, and more than one person (Steve Ballmer) thinks it's a brilliant strategic move.





Here's a headline representative of the brainless reaction: Microsoft buying a chunk of Dell would be smart (for Microsoft). This thought process posits (I hate that word!) that Microsoft wants more control over hardware that runs Windows 8. It wants to ensure that these devices jibe with CEO Steve Ballmer's grand plan (trust him, he has one), so if Microsoft calls the shots or, at the very least, has some influence at Dell, this takes care of that.

First, Michael Dell will likely retain a large enough stake in his company to keep Ballmer at bay. So what we'll have is a case of the blind leading the blind. Even if Ballmer ends up able to make all of the key Microsoft-related decisions at Dell, well, that's not good. In fact, it might be worse. Like a blind man trying to use a crosswalk where the Walk/Don't Walk signals don't talk.

Excitement over the prospects of Microsoft involvement in a bid for Dell starts from a faulty premise. That, beyond Xbox, any even remotely redeeming (or, more so, actionable) qualities exist between the two companies.





I'm not sure why a company that makes hardware -- Microsoft -- buying another company that makes (out-of-favor) hardware appears as some sort of magic bullet to a surprising number of people. It's not like these two companies will get together and bring innovation and wildly popular consumer/enterprise products to market like Apple (AAPL), Amazon.com (AMZN) or even Google (GOOG).

Stock quotes in this article: MSFT, DELL, AAPL, AMZN, GOOG 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,514.37 +65.12 0.40%
S&P 500 1,879.55 +7.66 0.41%
NASDAQ 4,161.4580 +39.9120 0.97%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs