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Non-Tech : Iomega Thread without Iomega -- Ignore unavailable to you. Want to Upgrade?

To: Thomas L Nielsen who wrote (5054)	12/11/1998 12:26:00 PM
From: Jim Welsh	Respond to of 10072

<<If it is a negative move by IOM then why did they do it?>> Whether positive or negative it would seem to me that keeping the technology away from a deep-pocketed competitor would be a plus in the long run--even if they never use the technology. Jim W.

To: Thomas L Nielsen who wrote (5054)	12/11/1998 6:01:00 PM
From: Herb Fuller	Read Replies (5) \| Respond to of 10072

Thomas , Re:>>> If it is a negative move by IOM then why did they do it? <<< The above is referring to the possible purchase of the Syquest assets by Iomega . This is an easy one . I once worked for a fast growing Corporation and the management was always looking for a bargain when we were setting up equipment for our production lines . The equipment that Syquest was using IMO is very similar to the equipment that Iomega uses . The technology that may come from the sale would probably be useless to Iomega . The purchase of the Syquest equipment at bargain basement prices would be a plus for Iomega . Herb

To: Thomas L Nielsen who wrote (5054)	12/12/1998 12:54:00 AM
From: Jonathan S. Feingold	Respond to of 10072

I have 25,000 shares of Syquest. Will I receive anything for these shares if Iomega really purchased Syquest's assests? Jonathan

To: Thomas L Nielsen who wrote (5054)	12/12/1998 12:28:00 PM
From: BeachBum	Respond to of 10072

Thomas... After reading the reposted press release from Nomai, it now makes more sense if IOM were to also purchase any inventory from Syqt at a discounted price because Nomai stated they would still sell and support Syqt disks ( high margin ? ) I'm sure they wouldn't want to produce the drives, along with the production equipment and the patents I guess the leftover inventory to make the disks could be bought and sold for a profit. BB ^-^-

To: Thomas L Nielsen who wrote (5054)	12/12/1998 12:34:00 PM
From: Dale Stempson	Read Replies (1) \| Respond to of 10072

RE: Iomega and SyQuest >>> Syquest purchase by Iomega has been posted, at least it is a strong rumor. Could you folks on this thread please comment on the merits of this. I have been reading that this may be a negative move by Iomega. Anyone wish to comment why this would be negative. <<< I believe that Iomega might do well financially if they were able to purchase certain key SyQuest assets for a song. Killing the existing Iomega/SyQuest legal cases alone would likely free up some allocated funds as well as cure a few headaches. In addition, Castlewood has the potential to become a significant threat to Jaz. If Iomega chose to put their resources into pursuing SyQuest's legal claims against Castlewood, they might be able to do serious damage. Obtaining the rights to sell SyQuest replacement disks for SparQ and SyJet (which the Nomai division is not currently producing) could add a little profit to the bottom line over the next couple years. They'd have a stranglehold on that market and could sell at premium prices and high margins for some time to come. Who knows what the patents and technology might be worth to Iomega. I suspect that there are potential improvements and cost reductions which might result. Also of concern here is just what a new or existing competitor (with significant resources) might be able to do with this intellectual property. Preventing this from happening could alone be worth the price. I know that there are those who are concerned about Iomega associating itself with SyQuest's currently less than favorable reputation. Perhaps if Iomega put the right spin on the purchase and outlined the benefits of their plan to the public, they could convert concerned consumers. They don't have to continue making SyQuest drives and could focus their press on "applying well recognized Iomega high standards" to improving SyQuest disk quality, and "offering the huge Iomega support services" in assisting stranded customers. In other words, they could make it appear that the purchase would result in taking the best of what Iomega has to offer and applying it to the old SyQuest media products for the benefit of the orphaned user. In addition, Iomega might even consider offering an incentive to existing SyQuest drive users to convert to Iomega products, thus locking in a major group of customers and strengthening the base. The bottom line: I believe Iomega could make a purchase of SyQuest assets appear to be a major win, (which it would be IMO). Regards - Dale (BTW and FWIW, I'm back in the Iomega camp as of yesterday after initiating a significant position at 6-5/8)