
SanDisk to buy Fusion-io to boost flash storage business - coreymgilmore
http://www.reuters.com/article/2014/06/16/us-sandisk-deals-idUSKBN0ER1A620140616
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djloche
Here's the key take-away:

> "Fusion-io ... has reported a loss for five quarters in a row."

This is why the stock was down so low, and why they were willing to take the
offer. You run a business at a loss long enough and your board starts thinking
about other 'strategic options' including selling to competitors with big
pockets.

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seiji
Fun fact: When Fusion-io first released their hardware, the NSA purchased
every production run for six months. Regular customers could get evaluation
cards, but they had to wait a long time for production purchases due to the
complete high speed data storage buy up.

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otterley
My understanding is that it was Facebook who had dibs on their production, not
NSA.

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drglitch
isn't that pretty much the same "company" as far as data sharing is concerned?
:)

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leccine
:D :D

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fit2rule
Congrats Woz! Hope you made out like a bandit, old chap. ;)

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PaulHoule
That price is shockingly low.

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hatred
Naive Query : The article mentions that it's a 21 percent premium to their
present stock price. Can you throw some more light on why do you consider so ?

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phamilton
That was my reaction too. I guess the stock valuation seems low too then.

Hardware is expensive, especially high performance hardware. R&D is a minimum
3 years and 10 million dollars per product. 1.1B is roughly a 10x on a dozen
products and that doesn't include all the other operating costs.

I'm oversimplifying things, but this was the thought process that concluded
with 1.1B seeming low.

~~~
taylorbuley
I'm with you, and possibly for reasons beyond just the financials. If you look
at the packaging, marketing and other variables (such as the likely customer
of $22k/3TB of Flash) one gets the feeling that this is a very "premium"
product and as such the company itself would also sell at such a premium.

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kkhire
To think everyone was phased when YouTube was bought for 1.65 billion...

