Spansion Inc. Message Board

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Technology Stocks : Spansion Inc.

CY 23.82

0.0%

Apr 16 5:00 PM EST

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To: bobs10 who wrote (3799)	4/12/2008 3:51:23 AM
From: NicoV	of 4590

>I wonder if this had anything to do with it? When Spansion went public, they said that by separating from AMD they might need some (cross) licensing agreements of their own, i.e. while they were a division of AMD, they were covered by AMD licensing agreements with third parties (probably also IBM). The announcement of yesterday is probably just a regularisation of the situation with IBM. IBM got a good deal IMO: Spansion is paying with stock, and at the current stock levels IBM gets quite a few shares. Currently there are 158M SPSN shares, and IBM gets 1.6M shares, about 1% of the entire company! And IBM still gets $10M before the end of march 2010. But IBM will accept SPSN stock, so it won't have an impact on SPSN's cash position. There will be dilution of course for the existing shareholders (I assume this is about new shares, not existing shares). Imagine the deal would be finalized at last summer's prices (sum of Spansion and Saifun market value), and IBM would probably have gotten a tenth of what they got now (assumming the same $ amount pricing)

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