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April 8, 2008

EMC Buys 90s High Flyer Iomega For $213 Million

Erick Schonfeld

12 comments »

iomega-chart.png

Storage giant EMC is buying Iomega for $213 million in cash, a slight premium above its $200 million market cap at the close of trading today. Iomega, which makes portable hard drives and Zip drives, will become the core of EMC’s consumer and small business storage device business. During the 1990s, Iomega was one of the original tech momentum stocks, trading as high as $114. Today, it closed at $3.64.

The hardware game just ain’t what it used to be.

Perhaps EMC could combine Iomega with Mozy, an online storage service it bought last year for $76 million. The trend in consumer storage, as with consumer software, is to offer both online and offline capabilities.

  • Sphere It

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  1. diystartupnews.com

    April 8th, 2008 at 2:27 pm

    ah good zip drives, the writing was on the wall for them as soon as flash memory started to come of age and hd space got bigger. Good to see they survived. I guess the founders got a good exit some time ago.

  2. Wayne Lambright

    April 8th, 2008 at 2:31 pm

    Sweet… now if we could just convert those old grey plastic 200Meg drives into 200Gig :-). If they decide to change the name to DataDeposit I can help.

  3. Jaisen

    April 8th, 2008 at 2:45 pm

    @1 … agree…great survival story here

  4. Chris Rossini

    April 8th, 2008 at 2:59 pm

    I still have one of the old Zip Drives…Man, we’ve come a long way since then.

  5. bob

    April 8th, 2008 at 3:16 pm

    I think it was the writable CD that did Iomega in. I had one of those blue drives back in the day.

  6. iomega sucks

    April 8th, 2008 at 3:38 pm

    it crashed my PC twice with thier external hd.

  7. Mike

    April 8th, 2008 at 4:00 pm

    The zip drive… ugh. I remember I did a photoshop project for a class with about 300 pics on a disk. Took me about 20 hours. Went to turn it in, and the disk had errors on it and had to be reformatted! I was very happy to see CD-Rs come into the picture.

  8. Knowledge is power

    April 8th, 2008 at 5:12 pm

    Wow, just yesterday I through out my really old Zip drive which I only used it only once when I first bought it. It was completely useless and a total waste of money.

  9. MikeT

    April 8th, 2008 at 5:30 pm

    Erick, it’s better to show charts in linear mode, not logarithmic - they are much more dramatic. iOmega’s fall would dispaly a spectacular fall in a linear chart.
    Cheers.

  10. Jon

    April 8th, 2008 at 5:34 pm

    The fact that they ‘where’ great doesn’t detract their footnote in history, I had several of these zip drives, they where a revolution when they came out but have since been replaced by CD and DVD (now flash).

    Jon
    http://woodmarvels.com - Create Unique Memories

  11. YDRIVE

    April 8th, 2008 at 7:44 pm

    Pretty good deal for EMC.. :-)

  12. Informer

    April 10th, 2008 at 2:19 am

    Pretty interesting, considering that EMC just concluded purchase of Pi Corp
    http://www.theregister.co.uk/2.....c_buys_pi/

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