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Micron Likely to Acquire Elpida for $2.5 Billion

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.

  • phamhlam
    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.
    Reply
  • v3nom777
    Umm... Yay?
    Reply
  • Make it happen Micron. I used to buy Micron computers. They were the best!
    Reply
  • rohitbaran
    Micron would keep Elpida's two major factories open for production and not lay off any of its employees.
    Good
    Reply
  • turbolover22
    So do I buy stock in Elpida or Micron?
    Reply
  • 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....
    Reply
  • anti-painkilla
    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.
    Reply
  • livebriand
    Hmm... good company, but then there's less competition for us.
    Reply