Now Micron has announced that it will spin-off its own imaging solutions business, Aptina Imaging Corp., to private equity firms TPG Capital and Riverwood Capital. Aptina has led the industry in enabling crisp pictures and video regardless of the application. Its customers have included major mobile phone manufacturers, major PC brands, and some major automotive OEMs. Micron will retain a minority stake in the independent, privately held company, and continue to manufacture products and provide services for Aptina at its worldwide facilities.

"TPG is very excited to invest in Aptina," said John Marren, a partner at TPG. "An independent Aptina will attract world-class talent, and given its strong, debt-free balance sheet, Aptina is well positioned to pursue consolidation and other growth opportunities."

"We look forward to partnering with TPG and Aptina management to further develop Aptina as the market leader in imaging solutions," said Michael Marks, founding partner of Riverwood.

The transaction is expected to be completed within 60 days, and the company expects to record a loss of about $100 million in the fourth quarter of its fiscal year in connection with the sale. Micron Technologies is scheduled to report fiscal Q3 2009 results on June 22. The First Call consensus recommendation is to buy MU. Shares have surged about 68% in the past three months, but are still about 38% lower than a year ago.