History 2001: Maxtor Intends to Purchase MMC Technology

Maxtor entered into a non-binding letter of intent for the purchase, for $18 million in cash, of disk media manufacturer MMC Technology, a subsidiary of Hynix Semiconductor America, formerly Hyundai Electronics America.

It’s worth noting that at least 95% of MMC’s revenues come from the sale of media to Maxtor (other wellknown customers are Calluna and Halo).

Even so, recall that even if the deal doesn’t happen, Trace last year offered nearly $80 million for the same company.

Hyundai is clearly looking to get out of the tough HDD market, since Maxtor will soon place 28.3 million shares owned by Hynix on the public market, and will repurchase from the latter $50 million in common stock.

This article is an abstract of news published on issue 162 on July 2001 from the former paper version of Computer Data Storage Newsletter