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OCZ Technology Group AŞ Message Board

  • longocz longocz Sep 26, 2012 7:12 PM Flag

    Theo on collapse of deal

    Take it for what it's worth. Not sure it means anything for stock price now anyways, but maybe satisfies some curiosity. Can't vouch for accuracy. See his stocktwits stream:

    "As far as my sources have confirmed, Mr. Petersen wanted a seat on $STX board and that caused the collapse of the deal."

    "Secondly, the price deal was locked onto a multiplier, instead of set value, and the rise of stock value pressured the deal."

    "The value went too high north of what was targeted... pretty similar to Sony's failed acquisition of $AAPL in 1990s."

    Sounds plausible to me. Also would explain board not being particularly pleased with RP.

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    • This thread is 100% popular.

    • The more I think about these comments they do make sense. The multiplier either means STX stock and cash or the rumored 3 for 1 deal in stock which I really take as meaning three times the share price of OCZ which lets say is 5.24 that puts you around 15.76 and then that puts you close to the rumored 1 billion. Just speculation but that is what I would take as multiplier.

      • 1 Reply to hokiestock
      • you want to know how i knew theo was full of crap? it was when he said it would be a stock and cash deal! seagate has well over 2 billion in FREE CASH, they wouldn't use stock to buy ANYTHING when they doing a major share buyback.

        just think it would put seagate in the same spot as ocz. they telling their shareholders we going to reduce the share count by 30% then turn around and issue more shares? WTH? some CEO's honor their words!!! this is why seagate is a solid buy and the street believes EVERY word he says.

        one day you bagholders might just get this....

    • Didn't RP make the comment about wanting to be the next Seagate or something to that effect in his last conference call.
      Multiplier they must have had the deal on for awhile. Multiplier must be also the STX stock value and not OCZ all together. That is why you are seeing the manipulation in the stocks. Confirms my conspiracy theory with Greenlight Capital behind all of this.

    • I don't know what it is about Theo, but he reminds me of a peep squeak who needs more then 15 minutes of fame. Theo needs a dog its obvious he's lonely.

      Sentiment: Hold

    • "As far as my sources have confirmed, Mr. Petersen wanted a seat on $STX board and that caused the collapse of the deal."

      Much credit due to RP for being an entrepreneur, but in no way has the qualifications to sit on the board at STX.

      "Secondly, the price deal was locked onto a multiplier, instead of set value, and the rise of stock value pressured the deal."

      In June/July, OCZ was a $4 - $5 stock. Rumor leaks momentary pushed it up to the high $7s which was way more than STX valued the company at and killed the deal.

      Ten years ago, I was a VP in a high growth company makings SBUS (e.g. Sun Micro) controllers (e.g. networking, storage etc) that was cash strapped with growth constraints.

      While no way a commonality business, It was a struggle, but we finally found a buyer at less than 1X market cap with multipliers, based future performance.

      Had the choice to cash in vested/exercisable shares as well as buy the exercisable shares.

      Only took the profits on the exercisable shares.

      Long story short, after the M&A, the added incentives never triggered (even though the business sold was not Lego building and/or a commodity.

      There seems to be much value placed on the IP. Why would they pay $32M for a controller company and today state $36M the transaction as goodwill (e.g. amount paid over fair value)?

      I made the effort to look up the OCZ patents and found them mainly based on DRAM, power supplies technology etc.

    • for one when a company is bought out everyone becomes a employee you don't get to ask to become anything so bull.

      secondly the price seriously? if seagate ever wanted to buy ocz they would do so at any price! they don't care but they don't want some ebay/amazon junk!!!

      look they partners with intel/samsung/mcrosoft and you think they want or need ocz? pack of brain dead bagholders....

      • 4 Replies to pipster1234
      • Wrong.... Again....I have seen the CEO of a company in a M&A join the BOD as part of the deal, Northeast utilities bought N-star. N-star CEO became CEO of the company, and the CEO of Northeast utilities joined the BOD.

        Secondly, "at any cost?No smart buisnessman is going to over pay for any assett.

        Once again you are only halve a word, you are not an assett, but only half an assett.

        Sentiment: Strong Buy

      • Actually that is a very reasonable request to be on the board of STX. Especially if two things you fathered the company and you are getting stock deal and cash and not all cash. The comments make alot of sense about the rumors first being stock and cash. Probably based of both Stock values and not just one company.
        As well the manipulation of the stock is mightly explained with that statement based on a multiplier and then rumors hitting the street from Benzinga.
        There is alot in those two sentences and I would not take that with a grain of salt.

      • Pip you have obviously not been involved in any deals like this because you are flat wrong on this one. Negotiations are exactly that; each side angling for what is in their best interest. It is not uncommon at all for someone like RP to ask for a board seat or some other executive position in the combined entity. Usually founders don't last very long in those positions as they figure out that they don't have as much power as they used to, however.

      • "for one when a company is bought out everyone becomes a employee you don't get to ask to become anything so bull."

        you are simply retarded..... of course you can ASK FOR ANYTHING YOU WANT when you are the one doing the negotiations....... because the company isn't just bought...... it is ALSO SOLD.. and the seller can have his own ideas on what he wants

    • I wish he would just shut up already.

    • Lmao that guy is such a tool. He's trying to cover his #$%$ from the sec but its too late. As someone else mentioned, he is completely contradicting his previous #$%$ stories. Oh theo, thanks for this. Very entertaining. But rest assured, the sec is coming....

      • 2 Replies to schemp06
      • What's funny is you think the SEC is coming for everyone. You are a joke, the SEC turned their uninformed heads to Bernie Madoff after having been shown proof. Time after time you look back in history and see how they just let people do what ever they wanted. And you think their coming after This jerk Theo or JP ... I love how now you end your posts or somewhere in them you say in my opinion ... You crack me up . Still here with nothing to gain ... I still think you're an Ex OCZ employee who wants nothing more than for them to fail after firing your stupid anger issue arz .. Go back to your basement and keep posting ..weird that someone who has nothing riding on this stock posts on this board so much .. You barely post anywhere else .. Weird I say or just sad

      • his story's very believable

    • Theo...All hat no cattle.

    • if that's true, 2 things...

      1. theo's pump hurt the deal by raising the valuation

      2. with RP gone and stock way down, deal could be back on

      Sentiment: Strong Buy

      • 2 Replies to warrioger
      • It's possible getting rid of RP was an olive branch to STX - but who knows.

        They could be in some kind of negotiations now - or not. Again, we don't know squat.

        I do believe that he was fired because he screwed up the deal, and this gives some more clarity on it. Also explains their crazy cash burn that quarter - they were expecting acquisition. Could mean cash burn reduced this last q.

        Also possible acquiring company would like to see OCZ's stock price higher before offering to buy, so that it doesn't seem to be such a premium to its shareholders (i.e. if the price were fixed, they might be more hesitant to make an offer at these share prices for fear of their own shareholders).

        All guesses. No answers. Amusing nonetheless... Wouldn't trade on it...

      • So what's stopping them from doing the deal now? And why is STX now claiming they don't want an SSD company anymore?

        Nice to know we can blame Theo for effing it up though.