Filing Flows › Micron Technology (MU) › Takeover & LBO
Is Micron Technology (MU) a takeover target?
A leveraged buyout at today's price plus 30% ($853.31 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. At $936.4B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect. Historically 2.1% of companies with its figures were bought within a year (0.42× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $853.31 | today's $656.39 plus 30% |
| × shares | 1,145.0 million | |
| = Equity value | $977.0B | |
| + Debt refinanced | $2.8B | |
| − Cash | $43.4B | |
| = Enterprise value | $936.4B | 8.6× EBITDA of $108.8B |
| Fees | $18.7B | 2% of the price |
| New debt | $598.6B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $356.5B | 37% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $136.6B | $111.6B | $45.8B | $25.7B | $572.9B |
| Year 2 | $140.3B | $114.6B | $43.8B | $29.1B | $543.9B |
| Year 3 | $144.2B | $117.8B | $41.6B | $32.8B | $511.1B |
| Year 4 | $148.3B | $121.2B | $39.1B | $36.9B | $474.2B |
| Year 5 | $152.8B | $124.8B | $36.3B | $41.4B | $432.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 6.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $815.5B | |
| − Debt left | $432.8B | |
| = Buyer's equity | $382.7B | |
| Money multiple | 1.07× | on $356.5B put in |
| Buyer's yearly return (IRR) | 1.4% |
Price against return
What the buyer makes at other premiums over today's $656.39.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $722.03 | 11.6% |
| 20% | $787.67 | 6.5% |
| 30% | $853.31 | 1.4% |
| 40% | $918.95 | −2.4% |
| 50% | $984.59 | −5.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $133.2B | |
| EBITDA, last 12 months | $108.8B | 81.7% of revenue |
| Depreciation and amortization | $9.5B | |
| Capital spending | $30.7B | |
| Debt | $2.8B | |
| Cash | $43.4B | |
| Share price | $656.39 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 2.6% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 15% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Micron Technology would cost about $853.31 a share, $977.0B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $735.16 | $841.8B |
| Median | 30% | $853.31 | $977.0B |
| High end (a quarter paid more) | 31% | $859.87 | $984.6B |
The odds, from history
Historically 2.1% of companies with its figures were bought within a year (0.42× the average). Its figures put it in decile 1 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Micron Technology's latest quarter
Micron Technology, Q4 FY26: revenue $54.2B (+379% year over year), operating margin 80.7%, net earnings $37.7B, operating cash flow $44.0B. The chart follows the revenue to costs, profit and cash.
Questions
Is Micron Technology being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Micron Technology?
A leveraged buyout at today's price plus 30% ($853.31 a share) would return about 1% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. At $936.4B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of Micron Technology cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Micron Technology would cost about $853.31 a share, $977.0B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.