Ben

Western Digital to Acquire Hitachi Global Storage Technologies

Recommended Posts

Hitting the wire today is news that Western Digital is acquiring Hitachi Global Storage Technologies for $3.5 billion in cash and 25 million Western Digital common shares, valued at $750 million based on the closing price on March 4, 2011. The board of directors for both companies have approved the transaction which is expected to close in the third calendar quarter of 2011.

Read full story

Share this post


Link to post
Share on other sites

Interesting...

Will there be a massive product consolidation (Seagate buying out Maxtor)? Will one be feed the enterprise market and one stay consumer? Lots of interesting stuff is going to happen from this.

Share this post


Link to post
Share on other sites

As long as they'll be running as 2 separate divisions I see no real issue with this.

If Hgst's SSD division is part of this it would be a great thing for WD.

Share this post


Link to post
Share on other sites

Definitely a surprise to me, though it makes a bit more sense than an earlier rumor that WD was trying to buy out Seagate. I would imagine everything has to stay as two parallel divisions in the short term, as I remember Seagate took a while to digest the Maxtor acquisition. As for long-term plans, that's anybody's guess at this point.

From a consumer standpoint, I don't like seeing competition reduced, though.

Share this post


Link to post
Share on other sites

Well on the consumer front (not enterprise) has Hitachi been leveraged much over the past couple of years? It seems like a lot of it is going at business/enterprise/oem buyers outside of some popular consumer notebook products.

Share this post


Link to post
Share on other sites

We'll see...I'm at first not happy about the lack of competing products, but we get along well with WD, so that's positive I suppose ;)

I suspect the lines will take a year or larger to merge, if they go that route. It will be interesting to see how they manage the various brands. They both have strengths, Hitachi a little more so in the enterprise space I'd say, in part due to their reliability promises...not that WD is a slouch in that business. This is a deal about efficiency more than anything I bet, keeping the company competitive and all.

Share this post


Link to post
Share on other sites

I wouldn't really call the two competitors. Sure Hitachi has made a few hard drives. But I think their real bread and butter is in the Enterprise NAS solutions(enterprise NAS in the 16PB range). That's something I don't think Western Digital has much of.

Share this post


Link to post
Share on other sites

They are getting the Hitachi SSD business as part of this, I confirmed it with WD late yesterday. More details to come...

Share this post


Link to post
Share on other sites

Wow. One less competitor - that's how a simpleton like me sees it. I started buying Hitachi HDDs about two years ago. Around the middle/end of 2009 I bought a 2TB Hitachi 7200RPM drive from Newegg for $130 after rebate. As of today, the most inexpensive comparable WD drive is $150 and for Seagate it's $170. Over the past year I've bought all Hitachi drives for myself and recommended for family, and everyone has been happy and they seem to work just fine. So, my point is that if these cheap Hitachi drives start disappearing, I guess I'll know why. Because WD assimilated them!

But I don't really understand business and economics. Perhaps this is all for the best and will be good for us all! Maybe if I spent the extra few bucks and got the Seagate or WD I would notice a snappier drive. But my Hitachi feels just as good as any HDD I've ever had, or better.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now