Microsoft is in talks to invest $1 billion to $3 billion in PC maker Dell, according to a CNBC report.
The suggested leveraged buyout would give Microsoft the controlling share in Dell, which is one of the major hardware companies the Windows firm relies upon to sell its software products.
Tech Radar suggests the investment would make sense considering Microsoft's recent moves into the hardware space with its Surface tablets.
With Dell Microsoft would gain an in-house resource for PCs, laptops, notebooks and more tablets.
Dell also owns gaming hardware company Alienware, which assembles custom desktops and laptops, as well as computer peripherals such as headsets, mice and keyboards.