Nothing like some consolidation in the memory market to start the week. Earlier this morning, Micron announced that it's entered a "sponsor agreement" to acquire Japanese memory manufacturer Elpida Memory.
The transaction will involve a ¥60-billion ($750-million) cash payment. It's also going to involve an additional ¥140 billion ($1.75 billion), which Micron will pay in annual installments until 2019 to pay off Elpida's debt. Elpida filed for bankruptcy protection back in February; at the time, Reuters said its debt added up to about $5.6 billion.
In a "related transaction," Micron is going to pay 10 billion Taiwanese dollars ($334 million U.S.) to purchase 24% of Rexchip Electronics, a Taiwanese manufacturer of DRAM chips. Elpida already has a 65% stake in Rexchip, so once the proceedings go through, Micron will end up with a 89% stake in the Taiwanese firm. Micron says the firm's assets include "a 300mm DRAM fabrication facility located in Taiwan; and an assembly and test facility located in Akita, Japan."
According to Reuters' coverage of the deal, acquiring Elpida will double Micron's slice of the DRAM market. It will also make Micron the world's second-biggest DRAM manufacturer after Samsung. Right now, Reuters says, Elpida and Micron own 13.1% and 11.6% of the market, respectively, while Samsung has a larger 42.2% share.
|Friday night topic: your top movies?||91|
|Deal of the week: Corsair's 750D case and four fans for $100||16|
|Android on x86: A quick look at Asus' Memo Pad ME176C tablet||20|
|Triple-wide radiator defines Thermaltake's new water cooler||51|
|Report: Google proceeds with $1 billion Twitch.tv buyout||23|
|New Asus 802.11ac router can top 1.7Gbps||65|
|Early Unreal Tournament concept art reminds us how far we've come||32|
|The new new name for the UI is called Retro.||+40|