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No. of Recommendations: 5
A ton of misconception here: Micron Tech. (MU) did not sell Micron PC/Hostpro (MUEI). MU now has the same stake in the Hostpro turd they had in the whole PC-loser operation. Micron PC/Hostpro sold the PC operation on it's own, if you can really refer to paying someone to take your albatross as a "sale." As for the situation relating to sale of profitable DRAM from MU to MUEI, the fact is MUEI bought DRAM on the open market, and over the past several years actually purchased more from Infineon and Samsung than their own parent company. Check it out. Any over-market-price selling by MU to MUEI would have put them in very hot water. So, any DRAM purchase by MUEI, from MU, did nothing special for the MU bottom line. As for any potential near-future profit by MU, affected by MUEI, or any others, there likely will be none, they are hurting also. However, MU is cash-rich and debt-slack, and the most-current slide in DRAM spot prices is very much MU's fault, selling their bloated inventory to whomever will buy, and well below $2 for 64M parts. Yeah, MU wants to see Rambus tripped up, obviously, but don't mistake the MU and Hynix(Hyundai)front against Rambus as any sort of friendship. MU's past hostile tactics are nothing compared to what they are currently trying to do to Hynix right now, as they continue to bleed profusely. 5 years ago, when MU had 7% market share, anyone selling for less than MU was accused of "dumping." Now that they have 20% share and a ton of money, they sell into the spot market for whatever they can get, smiling as they step on the "bleeders." Getting to what this means for Rambus, they will need to come up with a killing legal blow, because MU's past history shows them to be willing to fight indefinitely, and they, perhaps unfortunately, have the resources to do it.
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