Micron to donate $120m shareholding to charity
Will appear as a loss on company's Q4 balance sheet
Memory maker Micron Technology will take a $120 million hit when it reports its fourth quarter results thanks to a share donation it's making to its non-profit making subsidiary, the Micron Technology Foundation.
Micron completed its fourth quarter on 31 August and has yet to report the results of its business during that three-month period. The charge was revealed by Interland, a company in whom Micron has a majority stake to the tune of 58.6 million shares. Those shares will be donated to the Foundation, effectively allowing Micron to write off $120 million.
Interland was until recently known as Micron Electronics, a Micron Technology subsidiary. Micron Electronics bought Interland, a Web hosting company, last month for $130 million. It then took on its acquisition's name.
The donation essentially ends Micron's interest in its subsidiary. And, as a charitable donation, there's almost certainly a tax advantage too. The Foundation supports charities local to Micron's various operational facilities.
When Micron reports its Q4 results - early next month, we expect - Wall Street is anticipating a loss of 30 cents a share. Micron hasn't commented on the donation, but since it has yet to report its Q4 figures, we can't say we're surprised. ®