Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
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.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.