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Micron Likely to Acquire Elpida for $2.5 Billion

By - Source: NY Times | B 8 comments

Micron has won the right to exclusively bid for the acquisition of Elpida Memory.

According to the New York Times, Micron has offered "more than" 200 billion yen, approximately $2.5 billion, for the bankrupt memory maker. A substantial portion of the money would go toward Elpida's outstanding debt.

It's heavy lifting for Micron, which said it had only $2.1 billion in cash as of March 1, but the deal would enable the company to become a powerful rival for Samsung, which has been dominating the memory chip market for almost a decade, according to IHS. With Elpida in its pocket, Micron could become the world's second largest DRAM memory maker with a market share of about 25 percent.

The New York Times report stated that Micron would keep Elpida's two major factories open for production and not lay off any of its employees. An announcement of an acquisition is expected this summer as Elpida will be unveiling its plan of going forward by August 21.

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  • 13 Hide
    phamhlam , May 8, 2012 6:05 AM
    Micron products are incredible. I can't believe their 128GB Crucial m4 was selling for $100 today and $125 on average. They are pushing the price per GB down hard without sacrificing performance.
Other Comments
  • 13 Hide
    phamhlam , May 8, 2012 6:05 AM
    Micron products are incredible. I can't believe their 128GB Crucial m4 was selling for $100 today and $125 on average. They are pushing the price per GB down hard without sacrificing performance.
  • 5 Hide
    v3nom777 , May 8, 2012 6:06 AM
    Umm... Yay?
  • 1 Hide
    Anonymous , May 8, 2012 1:59 PM
    Make it happen Micron. I used to buy Micron computers. They were the best!
  • 0 Hide
    rohitbaran , May 8, 2012 5:03 PM
    Quote:
    Micron would keep Elpida's two major factories open for production and not lay off any of its employees.

    Good
  • 0 Hide
    turbolover22 , May 8, 2012 5:16 PM
    So do I buy stock in Elpida or Micron?
  • 0 Hide
    Anonymous , May 8, 2012 7:32 PM
    Who pays $2 bil for BANKRUPT company?.... I would not by stock in Micron, as this does not seem like a good deal.
    Could Micron pick them up for a more of a bargain than this?
    How modern are their facilities, and how strong are their future orders/contracts? If they are going bankrupt they are doing something WRONG....
  • 0 Hide
    anti-painkilla , May 8, 2012 9:33 PM
    badideaWho pays $2 bil for BANKRUPT company?.... I would not by stock in Micron, as this does not seem like a good deal.Could Micron pick them up for a more of a bargain than this?How modern are their facilities, and how strong are their future orders/contracts? If they are going bankrupt they are doing something WRONG....


    Please read the article. It states that "A substantial portion of the money would go toward Elpida's outstanding debt."

    As in they want the company in one piece, they are paying a bargain for it minus the debt. Also i'm guessing since they are paying Over $2B for this they have a fair idea what they are doing. If they can pull this off this acquisition gives them a great opportunity to increase their own production.
  • 0 Hide
    livebriand , May 9, 2012 3:33 AM
    Hmm... good company, but then there's less competition for us.