Replies to post #186763 on Zeev's Turnips Patch-No Politics (ZEEV)

[jdaasoc]

MU is admitting to price fixing to avoid DOJ suit according to Bloomberg.

The price fixing was a 5 month ramp up SDRAM prices during tech spending downturn. I don't see them amitting to jacking up RDRAM prices as readily.

[TheProphet]

One of RMBS' theories in the FTC case is that the DRAMurai conspired to keep SDRAM and DDR prices unreasonably low in order to prevent RDRAM from being given a legitimate shot at marketplace acceptance and that is why RDRAM failed (as opposed to the FTC argument that RDRAM was "too expensive" to make).

I think this argument is far more peripheral than the market is giving it credit for. There is also an (unrealistic) perception that the judge in the FTC case will be influenced in favor of RMBS and against the FTC by a MU plea in that MU employees testified in the FTC case.

Prophet