Feeds

Micron chucks down $2.5bn lifeline to Elpida

If bid succeeds, embiggened firm will be number 2 in DRAM industry

Boost IT visibility and business value

Micron is bidding $2.5bn for worn-out and failing DRAMurai starveling Elpida after SK Hynix and Toshiba walked away.

Elpida is a bankrupt Japanese DRAM manufacturer that has fallen on hard times and is weighed down by $5.6bn debt. It has been searching for a white knight with a phased bid process. Toshiba and SK Hynix were potential bidders but have decided not to proceed.

A report in the New York Times says Elpida has elected to go with Micron after the Boise company said it would put $2.5bn into a kitty to pay off some of Elpida's debts and restructure the company. A draw for Micron, it is thought, has been Elpida's mobile RAM technology.

Micron has reportedly said no Elpida employees would lose their jobs, not initially at any rate, and two Elpida plants in Japan would stay open.

The other bidding group was composed of TPG Capital LP, a US private equity business, and Hony Capital of China. The Micron bid is by no means a done deal with much intricate jiggery-pokery needed to get most of Elpida's trustees and debt-holders to support it.

Elpida and Micron aren't officially commenting on those reports.

Micron, bulked up with Elpida, ranked number three in the DRAM industry, would pass Hynix and become the number 2 in the industry, becoming a stronger competitor to industry leader Samsung. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
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
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.