Micron (MU) to Gain Key Supplier Position with Apple (AAPL) on Elpida Buyout
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Price: $966.78 -0.77%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.8%
Revenue Growth %: +345.5%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.8%
Revenue Growth %: +345.5%
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Micron (Nasdaq: MU) is slated to become even more of a big deal with the potential acquisition of Elpida.
Confirmed earlier in the session Thursday, the acquisition of Elpida will make Micron the number one supplier to Apple (Nasdaq: AAPL), which, in its own right, is also kind of a big deal.
Elpida has been saddled by volatile prices in the memory chip market, eventually succumbing to bankruptcy in February with $5.6 billion in debt. The company is still a primary supplier of memory for Apple's products like the iPhone and iPad.
Also earlier in the week, as noted by CNET Thursday, one Citi analyst suspected Apple may have influenced Micron's bid for Elpida in an effort to limit disruption of its DRAM supply. The analyst put a preliminary price of $2.5 billion for Elpida.
Shares of Micron are up about 1.6 percent in pre-market trading.
Confirmed earlier in the session Thursday, the acquisition of Elpida will make Micron the number one supplier to Apple (Nasdaq: AAPL), which, in its own right, is also kind of a big deal.
Elpida has been saddled by volatile prices in the memory chip market, eventually succumbing to bankruptcy in February with $5.6 billion in debt. The company is still a primary supplier of memory for Apple's products like the iPhone and iPad.
Also earlier in the week, as noted by CNET Thursday, one Citi analyst suspected Apple may have influenced Micron's bid for Elpida in an effort to limit disruption of its DRAM supply. The analyst put a preliminary price of $2.5 billion for Elpida.
Shares of Micron are up about 1.6 percent in pre-market trading.
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