I think Quantum is smart. They don't see the profits of old in competing for desk-top drives anymore. Segate's making a lot of software. ReadRite's going belly-up. Don't know what WDC is doing.
I believe Quantum sees this deal as an opportunity to expand into the high end of the business. They've got 6,000 employees just waiting to be transitioned over as needed. This is a much better deal than CPQ/DEC where CPQ has to pay billions to "right-size" DEC.
Now, Quantum not only has the tape, they've got an outstanding bunch of patented libraries and the related software, and deals with EMC, SUN, etc., to boot. All they have to do is build on it.
I believe Quantum stole my meager shares here. But, not to worry, I bought some QNTM today. I hope the ATLPA share holders, hold out for a better premium though. But when all is said and done, I believe Quantum will make a lot of money in the sector. The storage sector may be a little tight right now. It may take a quarter beyond the acquisition, but there is tremendous potential here for a smart, well equipped storagae company. After all, storage is at the heart of the internet. Read Jubak's piece in "cornering telecom" (and the internet):
investor.msn.com
Then look at Quantum's position:
"Quantum's tape drive business has benefited from the increased use of the Internet, intranet, and database servers, which require frequent backup. Its products are distributed in 25 countries around the world."
investor.msn.com
Around the world? Is that the same world where ATL has it's offices? :-)
They (QNTM) could be wrong as rain, but there's an even chance they know what they're doing, in my opinion. Let's see if they stop here.
Greg |
