Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Reseller who wrote (5850)	1/14/1999 2:44:00 AM
From: Dale Stempson	Respond to of 10072

Reseller, Good comments. I believe Jodie and crew negotiated one helluva deal for Iomega. I suspect the fixed assets and replacement disk business are alone worth the price. Who knows what the intellectual property is worth. Perhaps we'll get a better idea of what it all means during the CC. >>> The excess drive inventory has to be put into circulation and I expect that they will be sold at bargain prices, " as is ". <<< After thinking about it, I'm not certain there's much in the way of drive inventory to deal with. You might recall that SyQuest auctioned off their excess inventory prior to filing BK. Returns from channel inventory where SyQuest was owed money might comprise most of what Iomega will obtain. Maybe the disposition of remaining drives is a non-issue. Regards - Dale

To: Reseller who wrote (5850)	1/14/1999 3:15:00 AM
From: Dale Stempson	Respond to of 10072

Re: Legend Group One potential benefit resulting from SyQuest's BK is the opportunity for Iomega to sell product in China. SyQuest had a partnership of sorts with the Legend Group. The company is a major player in the region and in addition to an existing distribution agreement, there were plans in the works to form a joint manufacturing venture in China. There were also expectations of providing significant quantities of drives to schools and other institutions. Perhaps Iomega will have a leg up on filling the void and pick up where SyQuest had left off. Regards - Dale

To: Reseller who wrote (5850)	1/15/1999 6:31:00 AM
From: Bob B.	Read Replies (1) \| Respond to of 10072

The main thing the acquisition got them was the chance to kill off both Castlewood and the ghost of Syquest in one shot. Denying Syquest's intellectual property to others eliminates the risk that one of the big boys will be able to get into the market in time to capitalize on the Y2K situation. Sony has stumbled badly and I don't think they'll be real competition - the plans for purchasing needed Y2K backup supplies are being made now. Imation is making its move - obviously spending on advertising and promotion - but their efforts don't seem to be making much of a dent. I've visited a couple of retail outlets that had one or two of their drives but no disk paks on sales. Now even if the "20 percent higher capacity" and "reads 3 1/2 floppies" features attract me, I'm not going to buy the drive if I can't find disks for it. Imation is offering very low prices right now, but since they don't manufacture their own drives, the price reductions must leave them with minimal profit. Sound likes desperation time at Imation!