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Memorex Bought for a Pricey Song

Now that Memorex has been acquired for at least $330 million, how long will it take before we hear the slogan, Is it live or is it Imation?” (See Imation to Acquire Memorex.)

Probably never. The main reason Imation paid all that money is for the Memorex brand-name recognition, which Ella Fitzgerald helped create in a shattering 1970s TV commercial.

“That commercial has carried the company through the years,” Memorex CEO Michael Golacinski said today in a conference call to discuss the acquisition.

Besides $330 million in cash up front, Imation will pay between $5 million and $45 million over the next three years depending on financial performance.

Imation plans to ride Memorex success in DVD and CD consumer markets into a leadership position in products built on emerging high-capacity optical technology such as Blu Ray and High Definition-DVD (HD-DVD). Most of Imation’s revenue comes from tape cartridges -- although it also sells flash memory -- optical media, and floppy drives.

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