OCZ Not Yet SOLD TO SEAGATE Late day Edit

**alan1476** · 30-07-2012

Quote:

We reported a while back that Seagate were looking to get their hands on OCZ. The value of the deal was not known, just that OCZ were valued at $300 million and Seagate were to have to pay considerably more than that for the acquisition,
An unofficial Seagate report has confirmed the deal has been finalised, for a staggering $1 billion – more than 3 times the market value of OCZ. This is great news for OCZ’s CEO, Mr. Ryan Petersen, who has managed to take OCZ from a DRAM memory module manufacturer worth $150 million per year to a successful SSD company worth more than $700 million each year.
However for consumers this is a deal that is going to be bad news. We’ve seen what both Seagate and Western Digital are doing in the hard drive market – artificially maintaining prices at high levels to keep revenue abnormally high. Now it seems Seagate will probably do something similar with OCZ. OCZ has always been the company to lead the market with the cheapest price SSDs, setting the SSD “bang for buck” standard. With Seagate at the helm, expect OCZ’s market leading price cuts to slowly fizzle out.
All that aside, hats off to OCZ and Ryan Petersen for making one of the most successful SSD companies in the world in the space of a few years.

Source eTeknix http://www.eteknix.com/news/ocz-sold...for-1-billion/

Quote:

Quote from Softpedia
Ryan Petersen has done an amazing job, and if there’s one young company in the computer storage industry that it worth a billion dollars, that company is surely OCZ.

All that is left for us to hope is that Mr. Petersen will build another SSD company with the money it gets from Seagate, as the buyout is certainly not beneficial for our budget health.

Source
http://news.softpedia.com/news/OCZ-S...n-283678.shtml

*Kenshin* · 30-07-2012

So is Ryan Petersen going to build another SSD maker with that one billion instead of ordering one of the world's largest yachts or planes? That sum's more than what I could guess, but it's obvious Seagate used some of the money it got from overcharging for their 1TB and 2TB HDD's thanks to that flood in Thailand.

At least, I feel glad I didn't buy any retail HDD for myself since that flood. But I bought this Dell laptop with a Seagate 500GB 7,200-RPM HDD inside... which was replaced with an OCZ SDD.

**alan1476** · 30-07-2012

I don't really feel this is in the best interest of the consumer but we will see. OCZ is not the only SSD manufactorer in the world, maybe Samsung or another big SSD company will still bring the prices down to where we can afford them.

WTexSkeptic · 30-07-2012

I'd feel a lot worse if Micron was the one being swallowed up. Couldn't care less about OCZ.

I wonder if Seagate is going to sell or spin off PC Power and Cooling now?

*Kenshin* · 30-07-2012

It's difficult to estimate the various company's market share and revenues, and numbers of shipped units. Most of the shipped units for top three, Samsung, Toshiba, and Intel, are OEM. Retail markets are actually small. Newegg and Amazon are just two of those retail channels where they sell and ship SSD drives to end users and businesses directly. So even if some other retail-oriented makers like SanDisk and Corsair try to increase prices by 10% or 30%, the overall impact will remain very small. Toshiba may have decreased NAND production by 30%, but they'll increase production at some future time when demand rises. Most of the OEM markets are also based on those long-term contracts just like most petroleum and natural gas shipments are... negotiated and signed for 5 years and 10 years, or even longer periods. Retail prices might change every week, but OEM prices continue to fall.

Warranty terms may change a little sometimes depending on the distributors as well. I don't need to ship an Agility 3 across the Pacific, but to the tiny distributor headquartered in central Seoul. Seagate has many more offices and distributors in South Korea. Some customers will like the changes. At least, free coffee and tea for every visiting customer or just about everyone passing by may be welcome. Whether Seagate will increase OCZ-designed SSD's is another matter. I doubt there will be great variations. It's been a very crowded market and everyone's predicting rapid growths over the coming years. Cash-rich SK, the petroleum and telecommunication business group of South Korea which has just bought Hynix, will help Hynix increase and refine NAND production which can only accelerate SSD development. I am not sure if it is a sound business strategy to buy OCZ for one billion US dollars. But it's not the CEO's and CFO's own money after all, and they usually lose little if it turns out a bad decision.

Anyway, it would have been difficult for Mr. Petersen to resist that kind of money offer. Kakao Talk also accepted about 70 million USD's from Tencent of China without telling its near 60 million users about the investment in clear terms. The investment money's not big for Tencent, or for Baidu, but it was just one of the many millions of insignifcant small 'app' developers.

**alan1476** · 30-07-2012

Quote:

Originally Posted by WTexSkeptic

I'd feel a lot worse if Micron was the one being swallowed up. Couldn't care less about OCZ.

I wonder if Seagate is going to sell or spin off PC Power and Cooling now?

I have a feeling this could be a continuing saga, now Western Digital has to answer the bell, I wonder who they will buy?

*Kenshin* · 30-07-2012

Quote:

Originally Posted by WTexSkeptic

I'd feel a lot worse if Micron was the one being swallowed up. Couldn't care less about OCZ.

I wonder if Seagate is going to sell or spin off PC Power and Cooling now?

It's far more difficult to sell, or buy Micron. It's well protected by the US government, but then even an iPad can be prohibited from export... because it can be used to make nuclear weapons.

Seagate and Samsung may try to fix NAND and SSD prices, but governments may be watching closely:

http://www.justice.gov/opa/pr/2005/O...05_at_540.html

Quote:

Originally Posted by WWW.USDOJ.GOV

Samsung’s fine is the second largest criminal antitrust fine in U.S. history and the largest criminal fine since 1999. “Price fixing threatens our free market system, stifles innovation, and robs American consumers of the benefit of competitive prices,” said Attorney General Alberto R. Gonzales. “Today’s guilty plea is evidence of the Department’s ongoing commitment to protect consumers from corporations that engage in illegal conduct.” Including today’s charge, three companies and five individuals have been charged and fines totaling more that $646 million have resulted from the Department’s ongoing antitrust investigation into price fixing in the DRAM industry.

ChristineBCW · 30-07-2012

Gov'ts may watch closely. Yeah. We know what THAT means - "Who can send us the biggest bribe?!!" (EDIT - oops, sorry - that should be spelled "biggest campaign contribution". Sorry!)

All these monopolist-wanna'be's - would they REALLY know how to make a better world if they owned it all?!! Well, I do think there's considerable scrambling to cover their bases. Uh. "Diversify" is the proper term. Scrambling, though, is the motivation, I think. This could mean an HDD funeral could be a lot sooner than I expected.

**alan1476** · 31-07-2012

Something must have happened to this deal late in the day. This was reported at 4:56PM EST.

http://www.forbes.com/sites/ericsavi...hares-retreat/

and I thought those sites were good reporters, I guess they were fooled also.

30-07-2012	#2
Kenshin MyCE Resident Join Date: May 2002 Location: Near Seoul, South Korea Posts: 13,160	So is Ryan Petersen going to build another SSD maker with that one billion instead of ordering one of the world's largest yachts or planes? That sum's more than what I could guess, but it's obvious Seagate used some of the money it got from overcharging for their 1TB and 2TB HDD's thanks to that flood in Thailand. At least, I feel glad I didn't buy any retail HDD for myself since that flood. But I bought this Dell laptop with a Seagate 500GB 7,200-RPM HDD inside... which was replaced with an OCZ SDD. __________________ Kill Confucius

30-07-2012	#3
alan1476 Senior Moderator and Software Editor Join Date: May 2005 Location: Watching you Posts: 18,382	I don't really feel this is in the best interest of the consumer but we will see. OCZ is not the only SSD manufactorer in the world, maybe Samsung or another big SSD company will still bring the prices down to where we can afford them. __________________ I do not provide technical support over E-mail or Private Message Please post your questions on the Forum Sign up to CD Freaks Register Here FORUM RULES Need some help ? Please use our search function first Join us on the CDFreaks Folding@Home Team! Read more here Get WinDWFlash HERE My Computer specs are HERE Take a look New rig Intellectual property has the shelf life of a banana. Bill Gates

30-07-2012	#5
Kenshin MyCE Resident Join Date: May 2002 Location: Near Seoul, South Korea Posts: 13,160	It's difficult to estimate the various company's market share and revenues, and numbers of shipped units. Most of the shipped units for top three, Samsung, Toshiba, and Intel, are OEM. Retail markets are actually small. Newegg and Amazon are just two of those retail channels where they sell and ship SSD drives to end users and businesses directly. So even if some other retail-oriented makers like SanDisk and Corsair try to increase prices by 10% or 30%, the overall impact will remain very small. Toshiba may have decreased NAND production by 30%, but they'll increase production at some future time when demand rises. Most of the OEM markets are also based on those long-term contracts just like most petroleum and natural gas shipments are... negotiated and signed for 5 years and 10 years, or even longer periods. Retail prices might change every week, but OEM prices continue to fall. Warranty terms may change a little sometimes depending on the distributors as well. I don't need to ship an Agility 3 across the Pacific, but to the tiny distributor headquartered in central Seoul. Seagate has many more offices and distributors in South Korea. Some customers will like the changes. At least, free coffee and tea for every visiting customer or just about everyone passing by may be welcome. Whether Seagate will increase OCZ-designed SSD's is another matter. I doubt there will be great variations. It's been a very crowded market and everyone's predicting rapid growths over the coming years. Cash-rich SK, the petroleum and telecommunication business group of South Korea which has just bought Hynix, will help Hynix increase and refine NAND production which can only accelerate SSD development. I am not sure if it is a sound business strategy to buy OCZ for one billion US dollars. But it's not the CEO's and CFO's own money after all, and they usually lose little if it turns out a bad decision. Anyway, it would have been difficult for Mr. Petersen to resist that kind of money offer. Kakao Talk also accepted about 70 million USD's from Tencent of China without telling its near 60 million users about the investment in clear terms. The investment money's not big for Tencent, or for Baidu, but it was just one of the many millions of insignifcant small 'app' developers. __________________ Kill Confucius

31-07-2012	#9
alan1476 Senior Moderator and Software Editor Join Date: May 2005 Location: Watching you Posts: 18,382	Something must have happened to this deal late in the day. This was reported at 4:56PM EST. http://www.forbes.com/sites/ericsavi...hares-retreat/ and I thought those sites were good reporters, I guess they were fooled also. __________________ I do not provide technical support over E-mail or Private Message Please post your questions on the Forum Sign up to CD Freaks Register Here FORUM RULES Need some help ? Please use our search function first Join us on the CDFreaks Folding@Home Team! Read more here Get WinDWFlash HERE My Computer specs are HERE Take a look New rig Intellectual property has the shelf life of a banana. Bill Gates

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Seagate to acquire OCZ Technology?	Dee	Solid State Drives (SSD), Hard Drives (HDD) and NAS	24	23-07-2012 18:39
father's day: what are you doing for fathers day	marloyd	Living Room	10	21-06-2010 17:54
Better Late then Never!!	Orion74	AnyDVD	8	27-01-2007 23:17
832 [edit]Pre-order[/edit]	happyperoil	LiteOn / PLDS / Sony Writer	5	20-04-2004 09:45
[EDIT]A Movie[/EDIT] - Whats the Correct XviD video codec??	PoWa	Video Edit Software	10	30-05-2003 06:02

Today
Mr. Adbot Register to remove me Join Date: Today Location: Myce HQ Posts: Zillions

Today
Adbot Always the best offers Join Date: Today Location: Myce HQ Posts: Zillions

30-07-2012	#4
WTexSkeptic MyCE Rookie Join Date: Apr 2011 Posts: 23	I'd feel a lot worse if Micron was the one being swallowed up. Couldn't care less about OCZ. I wonder if Seagate is going to sell or spin off PC Power and Cooling now?

30-07-2012	#8
ChristineBCW MyCE Die Hard Join Date: Jul 2012 Location: USA-Canada Posts: 1,319	Gov'ts may watch closely. Yeah. We know what THAT means - "Who can send us the biggest bribe?!!" (EDIT - oops, sorry - that should be spelled "biggest campaign contribution". Sorry!) All these monopolist-wanna'be's - would they REALLY know how to make a better world if they owned it all?!! Well, I do think there's considerable scrambling to cover their bases. Uh. "Diversify" is the proper term. Scrambling, though, is the motivation, I think. This could mean an HDD funeral could be a lot sooner than I expected.