Feeds

SK Hynix drops bid to buy bankrupt Elpida

Joins Toshiba in abandoning DRAMurai warrior's corpse

Maximizing your infrastructure through virtualization

South Korean firm SK Hynix said today that it won't be going ahead with a bid for bankrupt Japanese firm Elpida Memory because the deal would have been too expensive.

"The Elpida deal would have been a huge financial investment," an SK Hynix spokesman told the Wall Street Journal. "To ease the financial burden, we had previously hoped to work with possible partners, such as Toshiba, but it didn't work out."

SK Hynix also confirmed in a regulatory filing that its shareholders had agreed to abandon the bidding.

Investors were made very happy by the news, sending the company's shares rising by almost 6 per cent at one point – they were still up by 3.3 per cent at 12.00 BST today.

At the end of last month, Toshiba reportedly pulled out of the running to snap up Elpida because it couldn't sort out a partnership with SK Hynix and didn't want to go it alone. Toshiba's exit was also greeted with relief from investors, growing the firm's shares by 3 per cent on the day the news broke.

With both SK Hynix and Toshiba out of the race, Elpida, whose price tag is rumoured by Japanese media to be about $1.9m, is left to the mercies of US chipmaker Micron or private equity firms.

Elpida, once the world's No 3 DRAM manufacturer, suffered as the world decided it liked NAND chippery much better. It filed for bankruptcy protection in February. ®

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.