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Should Micron (MU -3.9%) succeed in acquiring Elpida, as is rumored, the DRAM industry will have...

Should Micron (MU -3.9%) succeed in acquiring Elpida, as is rumored, the DRAM industry will have largely consolidated around 3 vendors: Samsung (SSNLF.PK - 44% share), Micron (23% share), and Hynix (HXSCF.PK - also 23%). Sterne Agee thinks the Street is worried about the deal's price and Micron's financing needs. However, the firm values Elpida's assets at $7B+, far above Micron's reported $2.5B+ offer.
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  • Russ Fischer
    , contributor
    Comments (2778) | Send Message
     
    While it might look like it, this is not just Micron going after Elpida. Intel and another entity will be involved in the ultimate resolution of the memory consolidation.
    Intel has the money and the need for Intel/Micron developed DRAM Hybrid Memory Cubes to make their server efforts even more valuable.
    http://bit.ly/IVEuqU
    The other entity is the world's largest user of nand flash and Solid State Drives. Guess who.
    With Elpida in hand, I think Micron turns into an independent memory joint venture that primarily serves the needs of the two giant participants.
    Micron shareholders will get about $15 per share.
    8 May 2012, 02:10 PM Reply Like
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