Micron to Buy Interland, Shed PC Business

Micron Electronics Inc. said it will exit its mainstay personal computer business and acquire Interland Inc. for $130 million in stock to form the nation’s third-largest Web hosting company. Micron said it will reduce its PC work force by about 400, or roughly 16%, effective immediately. The company plans to change its name to Interland and move its headquarters to Atlanta from Nampa, Idaho, after the acquisition. Micron’s majority owner, Micron Technology Inc., will buy its SpecTek microprocessor unit for $42 million, and an unnamed private investment firm will acquire the Micronpc.com unit for an undisclosed sum. The two units accounted for more than 97% of Micron Electronics’ revenue in its first quarter of fiscal 2001. Micron Electronics also reported a net loss of $168.9 million, or $1.75 a share, contrasted with a profit of $5.7 million, or 6 cents, a year earlier. Shares of Micron Electronics fell 31 cents to close at $3.13 on Nasdaq, while Micron Technology rose $2.13 to close at $48.83 on the NYSE.