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Micron - Lexar -- Was it worth the Merger?

The deal was supposed to give Micron a direct link to consumers. By subsuming Lexar Media in an $850 million merger six months ago, Micron acquired one of the top two brands in the market for flash cards. It also got an established retail distribution network -- just what Micron needed as its factories began producing flash memory chips. But now, as the holiday sales season gets into full swing, Lexar looks like the ghost of Christmas past.

Rather than taking Lexar's retail foundation to the next level, Micron appears to be letting its new property sit idle. Lexar's flash media cards and drives, which store data in everything from digital cameras to cell phones, play second fiddle to competing products from Sandisk on many store shelves. And players like Kingston Technology and PNY Technologies are increasingly boosting their retail presence.

The Street

Posted by | Wed, Dec 20, 2006 - 09:46 AM