Theo must have a very good source at Seagate or someone very close to Seagate.
As some of you may recall back in October 14 of 2010, Seagate announced they were in talks of going private: http://www.businesswire.com/news/home/20101014006950/en/Seagate-Technology-Announces-Preliminary-Interest-Private-Transaction
However the deal eventually didn't go through and Theo was one of the first person to report that on 10/28/2010 http://www.brightsideofnews.com/news/2010/10/28/seagate-is-not-going-private-sandforce-remains-safe.aspx
Seagate did not officially announce that the deal was off until November 29 of 2010, a month later after Theo's article.
Theo also appears to have a good relationship with Tobias Brinkmann (Dir Prod Mgt & Mkt) at OCZ.
Gotta give the guy credit if he indeed did not trade off this info.
I still don't think it matters what Theo says or does regarding this buyout. The volume and price movement are de facto evidence something's most definitely cooking. This rumor is more than just Theo. There's Fudzilla, The Register, and "mainstream" sites such as Reuters and The Street have reported in as well. There's no denial from either party. There has not been a single insider sell since April even though every month prior to that like clockwork there was a bevy of automatic sells. Last of all, it makes perfect sense for Seagate (Or WD, or anyone else looking to seriously enter the SSD space) to buy OCZ at this point - the pricing is the only real question.
A rumor to be sure but one that is standing on very firm legs indeed. We'll know soon enough.
Technically his source or sources does. Theo doesn't seem to be directly involved with Seagate and reports based on his sources.
The thing to keep in mind is that insider info and insider trading is two different things. Insider trading is trading with insider info and profiting from it, very illegal.
Having insider info itself is not illegal. Giving out insider info to the press also isn't illegal. It may be against coporate policy and could get you fired, which is why generally the names of sources in these cases are kept anonymous.