The deal would continue Microsoft's recent move to invest in technology firms that support their technologies or services
Microsoft is reportedly in negotiations with Silver Lake Partners with plans to invest between $1bn and $3bn to acquire the computer maker from public stockholders, according a report by CNBC.
Microsoft has not yet confirmed the report.
According to reports, however, the deal would continue Microsoft's recent move to invest in technology firms that support the software maker's technologies or services.
Reports of the potential buyout emerged as Dell shares reached a 52-week low.
Negotiations could fail if firms are unable to arrange financing or find a way to close the investment.
Dell has stepped into business software and technology consulting services, which are currently offer more profit.
The company also recently acquired data protection frim Credant Technologies.