Western Digital to buy Hitachi GST for $4.3 billion

By Jos
Mar 7, 2011
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  1. Western Digital has just announced an agreement to acquire Hitachi Global Storage Technologies in a cash and stock deal valued at about $4.3 billion. Under the terms of the agreement, Japan's Hitachi will sell its wholly owned hard disk drive business for $3.5 billion in cash and 25 million Western Digital common shares valued at $750 million, based on a stock price of $30.01. Hitachi will own about 10% of Western Digital's shares after the deal closes and two representatives of the company will be added to Western Digital's board.

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  2. madboyv1

    madboyv1 TechSpot Paladin Posts: 941   +42

    Woah, I kind of figured Samsung or Toshiba would pick up Hitatchi.
  3. Rick

    Rick TechSpot Staff Posts: 6,304   +52 Staff Member

    Over the course of 10 years, we have seen the number of manufactures drop significantly.

    Quantum was gobbled up by Maxtor
    Maxtor was gobbled up by Seagate
    IBM's drive division was gobbled up by Hitatchi
    Fujitsu was gobbled up by Toshiba
    Excelstor is gone (not that they amounted to much anyhow)

    Who's next?
  4. not a bad profit considering IBM sold it's disk business to Hitach in 2002 for $2.05 Billion.
  5. dividebyzero

    dividebyzero trainee n00b Posts: 4,784   +639

    The $US 2.05bn was the initial investment for 70% of IBM's hard drive division. It does not represent the total acquisition price.
    You might also consider that Hitachi got the hdd business at a knockdown price considering IBM's ongoing (at the time) sales, PR and legal trainwreck -the 75GXP, colloquially known as the IBM Deathstar.
    Since Hitachi GST is already a player in the SSD market -something lacking in WD's portfolio I would think the $3.5bn outlay represented good business.
  6. Lokalaskurar

    Lokalaskurar TechSpot Enthusiast Posts: 616

    I never imagined Western Digital as a candidate for Hitachi, I always though of a more local affiar - like Toshiba, FDX or even Fujitsu acquiring Hitachi. Frankly, I personally thought Hitachi would stand on their own legs for quite some time more.

    Yeah, what happened with those, anyway?
  7. EXCellR8

    EXCellR8 The Conservative Posts: 2,278

    good riddance desk star and travel star hard drives... you will NOT be missed.
  8. IAMTHESTIG

    IAMTHESTIG TechSpot Enthusiast Posts: 384   +34

    I can't decide if this is a good thing or a bad thing. It's bad because they are essentially removing a competitor from the market, giving the consumer less choices. But what are you gonna do?
  9. fpsgamerJR62

    fpsgamerJR62 Newcomer, in training Posts: 489

    I used IBM HDDs before switching to Western Digital because of the former's limited availability in my country. I've had zero problems with either brand. I'm currently using WD Caviar Black and I'm happy that WD bought Hitachi's HDD business. Now, I know I'll be buying my hard disks from only one company.


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