Western Digital cuts back on investments ahead of Hitachi acquisition
In an attempt to mitigate antitrust concerns over its acquisition of Hitachi’s hard disk drive business, Western Digital says it will pull back certain industry-related investments, granting competitor Toshiba some leeway in its ability to sell products to businesses and consumers.
According to Western Digital, the pending deal will allow Toshiba to sell a line of 3.5-inch HDDs for use in the general consumer electronic market as well as improve its ability to target businesses with the same model. The agreement hinges on regulatory approval of Western Digital’s $3.5 billion buyout of Hitachi GST, announced last March. The company believes it will receive that approval next month.
Ironically, Western Digital also revealed it would purchase Toshiba’s HDD manufacturing Storage Device Company Limited located in Thailand. The plant was hit hard by flooding last fall and has yet to renew operations, making it an odd selection for a company that’s already seen its fortunes turn for the worse due to heavy reliance on the country’s HDD output.
Western Digital continues to struggle after its HDD shipments catastrophically fell by nearly 50 percent last quarter. The majority of the drop-off can be chalked up to water-logged Thai factories and severely constrained supply lines. Rival Seagate, which closed its acquisition of Samsung’s HDD division in December, has become the new market leader by default.
2 Comments on Western Digital cuts back on investments ahead of Hitachi acquisition
- Posts: 6492
- Posted on: 01 Mar 12 15:34
|Western Digital says it will pull back certain industry-related investments, granting competitor Toshiba some leeway in its ability to sell products to businesses and consumers.|
- Posts: 965
- Posted on: 07 Mar 12 16:01
Still, approaching mid 2012 and no 4TB hard drives to speak of..?!?
the longer this industry stagnates, the closer SD/SSD can innovate and provide better value. 1-3TB SSD drives are already reality, just too, too expensive right now ( $450 - $1200). The closer that gap is, the more demand for SSD/SD will become. There are signifcant global events that could KILL the hard drive industry once and for all time.. such as a global recession and $200/barrel oil. That would put SSd drive makers in the driver's seat with the ability to stress volume production & bring down prices faster than the HDD industry can manuvre. Again, a doomsday prediction, but that's my take on things..
Most popular headlines
- Tue 16 Apr 16:12 by DoMiN8ToR
- Software, Windows 8
The upcoming update of Windows 8 might allow users to boot to the desktop again.
- Fri 12 Apr 15:10 by DoMiN8ToR
The number of jobs in the film and music industry in the United States has increased despite the claimed negative effects of illegal downloads.
- Tue 9 Apr 14:23 by DoMiN8ToR
The PirateBay has moved to the domain thepiratebay.gl in fear that their previous domain would be ceased by Swedish authorities
- Wed 17 Apr 13:57 by DoMiN8ToR
- Solid State (ssd)
A Chinese tech site has posted a picture that reveals details on Intel's 9 series chipset.