As we reported three weeks ago
, OCZ appeared to be a sinking ship. The real truth is that OCZ was a ship that was built on the expectations and lies of a certain former CEO that no longer graces the halls of this industry. OCZ was being groomed by that person to become a perfect buy-out target by one of the bigger players in the industry in need of an established and successful solid state business. And the truth is that OCZ's products were not necessarily poor and in some cases were quite good. They even improved their quality gradually over time, but their biggest mistake was trying to simply undercut all of their competitors in the space in terms of price.
OCZ participated in some incredibly aggressive pricing and rebate programs that ultimately drove some of their competitors entirely out of the business. While nobody quite knows what Ryan Petersen's strategy was with OCZ, it is to be assumed that he was either trying to run his competitors out of the market or simply drive revenue figures high enough that someone took notice. And companies did. Seagate was very interested in OCZ for a time, and even entered into negotiations to buy the company, but something in the 11th hour caused the whole deal to fall through. It was probably a second or third round of due diligence that spooked someone at Seagate or the rumor that Ryan wanted a seat on the board, but unfortunately with these things we can't precisely know.
What we do know is that OCZ's stock has been an absolute rollercoaster ride and that their accounting has been more than questionable. It took them many quarters to reconcile their books and revise their revenue and earnings figures. During this time of uncertainty and rumors of Ryan's manipulation
of the company's value and stock and earnings were rampant and the company surprisingly didn't have to answer to any SEC or FTC investigations because there simply weren't any. OCZ fought back against the rumors, but the truth is that something shady definitely went on inside of OCZ and the company took a long time to fix the mistakes.
Now, OCZ is basically a worthless stock at $0.15 which values the entire company at $10 million. There was a time, even during OCZ's last troubled year that rumors had popped up that Toshiba was interested in buying OCZ. And considering the sheer amount of day traders sitting on this stock and looking to make a quick buck it obviously shot up quickly. And as people began to realize that there would be no buy-out, the stock continued to plummet. Now that OCZ has filed for Bankruptcy, OCZ has reported
that Toshiba has made an offer to buy the assets of OCZ to pay off their debtors. The deal is currently nearing the substantially completed phase, which should mean that OCZ will most likely cease to exist as a company by the end of this year.
None of this really surprises anyone that has been following OCZ closely, but it is really sad to hear that many of the people working at the company will lose their jobs and that the former CEO is unaccounted for and has not been held responsible for his actions. It will also be a pretty disappointing thing for most of their consumers that bought their drives expecting support and warranty service. With a bankruptcy and acquisition of assets from Toshiba, such things may no longer be guaranteed anymore and are unknown entities. The good thing is that Toshiba is an established brand and they aren't going anywhere, so some consumers could theoretically expect support from Toshiba in the future.
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