Micron, Dell: Tech Winners & Losers
NEW YORK (TheStreet) -- Micron(MU) shares soared 3.8% to $6.55 on Monday as investors digested the news about the chip maker's acquisition of bankrupt Japanese rival Elpida Memory Inc for $750 million in cash and $1.75 billion in future installment payments.
In a related deal, Micron took a 24% stake in Taiwanese chip maker Rexchip Electronics for about $334 million. Elpida and Rexchip's manufacturing capabilities will roughly double Micron's capacity to make DRAM memory chips, a key component for smartphones and mobile devices.
Dell had been in a bidding war with buyout group Insight Venture Partners for months. Insight Venture Partners offered to buy Quest for $25.75 per share, or nearly $2.17 billion, earlier this year.
Concerns about cloud technology swirled on Monday after a violent storm caused server-related outages for Netflix(NFLX) , Instagram and Pinterest, which all rely on Amazon's(AMZN) Web services unit. However shares of Amazon held strong on Monday, up 0.42% to $229.32. Netflix fell only 0.93% reaching $68.
Google rose slightly on Monday, gaining just 0.07% to close at $580.47 in light volume trade.
--Written by Nathalie Pierrepont in New York.
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