Sigma Acquires Foveon

Started Nov 11, 2008 | Discussions thread
PavelAKACert Regular Member • Posts: 186
Re: To expand on point two...

Why do so many people write that Sigma will have to pay more because of Foveon R&D? You think that Foveon was selling his technology to Sigma bellow cost? Because only in this case this would be true . If Foveon was profitable, Sigma as a biggest client already covered the R&D plus profit, which will now stay in Sigma's pocket.

So in fact there are only two possibilities:

1)Foveon was not profitable anymore or even near bankruptcy. In this case Foveon was available for a good price and Sigma made a great deal saving this company and getting this technology under control.

2)Foveon was profitable. In this case Sigma will no longer have to cover Foveon's profit and only one question remains: how fast will they get this investment back.


I expect the inability to raise capital played in the Sigma decision
to buy Foveon. I think it is too soon to estimate how the downturn
will impact Sigma. The one thing that I think can be said is now
Sigma will have to not only pay for it's lens R&D and camera R&D but
they will also have to pick the R&D cost for the Foveon sensor -
which I expect is not cheap.

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