Intel Acquired By Emcore!
Hearing that Emcore Corp. acquired Intel, now that's what I call "groundbreaking news!" Anyway, this time it's not like that, because it wouldn't have any sense, especially since Intel Corp. is huge, and I don't even want to think about its value, and who can actually buy the entire company. These being said, things are pretty simple - Intel sold its enterprise and storage assets, and that's all!
Doug Davis, vice president of Intel's digital enterprise group, said "Customers are driving consolidation and vertical integration in the optical communications market segments. We will work together to complete a smooth transition of these businesses, building upon the experience in the telecom optical components acquisition."
Basically, Emcore will gain control of enterprise and storage assets of Intel’s Optical Platform Division, as well as the Intel Connects Cables business, and will issue 3.7 million shares of restricted stock for the acquisition, with adjustments during the first year after the closing of the transaction.
Reuben F. Richards, executive chairman at Emcore, said that "Following the successful acquisition of the telecom-related assets of Intel’s optical platform division, this second acquisition from Intel enables Emcore’s Fiber Optics to be a significant supplier for both telecom and datacom products. This acquisition will provide additional manufacturing efficiencies through economies of scale and vertical integration, benefiting our enterprise, storage, telecom, cable and high-performance computing customers."
For me, this seems like a move which allows Intel to concentrate on the CPU, chipset and video market, slowly dropping the balast.
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