Terms of the deal
Under the terms of the deal, Micron can fund up to $1 billion from its stocks and there is no termination fee. The company stated that it would raise $2.5 billion in new debt to fund the acquisition.
At that time, analysts questioned if it was wise for Micron to take on $2.5 billion in debt to invest in DRAM, where demand and prices were falling. But this was not the first acquisition to be questioned by analysts. Many acquisitions have come under question due to leverage, such as Intel-Altera (INTC), Avago-Broadcom (AVGO), and Microchip-Atmel (MCHP)