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URL:  https://boards.fool.com/concerning-the-merger-with-maxtor-this-seems-like-13442680.aspx

Subject:  Re: Merger with Quantum valued @ $2.3 billion Date:  10/7/2000  4:24 PM
Author:  RickSargent Number:  52 of 61

Concerning the merger with Maxtor, this seems like a really good deal for Michael Brown. The Quantum stockholders have been very upset with him for over a year now concerning stock price being in the dumps and missing his earnings projections. As a result of this Maxtor merger he gets a spot on the board of directors. Looks like this may give him something to do if Quantum dumps him.
In addition, you didn't mention that Maxtor and Quantum are competitors in Network Attached Servors (NAS). Approximately a year ago Quantum bought SNAP!, the original manufacturer of the hard disk based network attached server and made it a division of Quantum. One of the really good things about this merger is that it took a unique product and provided an opportunity for the division to buy its drives cheap. This was essential to making a good profit.
Now that Quantum has sold its disk drive division, is there an agreement to continue to sell drives to the SNAP division as cheaply? Again, Maxtor and Quantum are in direct competition in this new area of storage. It doesn't seem wise that Maxtor would contribute to the competitiveness of SNAP.

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