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Seagate Technology Public Limited Company Message Board

  • ohgoodgriefagain ohgoodgriefagain Sep 11, 2013 9:03 AM Flag

    Serious question: Why did STX let Virident go?

    Have we lost all the knowledgeable posters - nothing but spammers & shills left?

    I think this is a good question: STX already had a stake in Virident. Did WDC simply offer too much? Does STX know something from the inside that WDC doesn't? Does STX have some alternate plan (I didn't hear anything from the update yesterday)?

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    • "Serious question: Why did STX let Virident go?"

      Seriously consider:

      1. WDC, even with the STX litigation payoff in, has a stronger net cash position than STX.
      2. Virident is in the highly congested PCIe card market of over 40 firms including major flash manufacturers, large storage firms like EMC/IBM, and others. Entry into this market is relatively easy.
      3. While Virident has industry leading random IOPS performance, its technological advantage is based upon proprietary software, which can be fleeting.
      4. PCIe leader FIO is expected to be breakeven in FY14 on $0.5 B in sales
      6. Based on FIO's $1.2 B market cap and sales, the $684 M Virident price tag appears rich. Probably why WDC didn't provide much financial info on Virident.
      7. In combination, WDC's three solid-state storage acquisitions are not expected to be accretive until early FY15 and IMHO I doubt they move the bottom line by much even in CY15.
      8. Within 6 months of its 2011 IPO, its bank traders pushed FIO's share price up to almost $40. Before the Virident deal was announced this week, FIO was trading at just $10.80.

      Seriously, Is that enough?

 
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