Samsung sales hard drive business to Seagate for $1.4 billion
|
Beijing time April 19 afternoon news, samsung electronics and agree on Tuesday announced price of $1.4 billion (the way) cash and stock to sell its hard disk business, Seagate plans focus on memory chip business.
The two companies announced, samsung electronics will get 4520 million shares Seagate shares, worth $6.875 billion, accounting for approximately total stock of Seagate 9.6%; The rest will be in cash.
The western data previously spent $43 billion takeover Hitachi hard disk, with one action as the world's largest business hard drive manufacturer. Seagate this acquisition samsung hard disk to the market business, more competitive.
Samsung and Seagate in a joint statement said: "the deal will significantly expand in China and southeast Asia Seagate's user base. In addition, Seagate will ensure that you get the NAND flash memory chips important source and promote its SSD drive business development, and in samsung's hard disk supply system occupies the more important position."
Samsung will use the funds to sell hard disk business acquisition, in health care and green energy and other emerging fields spread more acquisitions and expansion. In addition, samsung can also bring more resources concentrated on SSD drive business.
In march of this year, the western data agreed to $43 billion worth of cash and equity, acquisition Hitachi hard disk business. The western data and has since become hard disk industry overlord, occupy nearly 50% market share. On the other hand, market research firm iSuppli last year, according to figures in the fourth quarter, Seagate hard drive market occupies 29% of share.
Samsung electronics is the world's largest storage chips and LCD TV manufacturers, in the past few quarters of profit steadily. Among them, the hard drive business is in long-term losses state.
Industry analysts say, Seagate or willing to purchase whether samsung suspect, the hard drive business still at least in the short term the deal cannot be completed.
Previously the industry, said samsung plans rumored $1.5 billion to sell its hard disk business, Seagate or will take over.
Due to the western data has just announced that 43 billion takeover of Hitachi related business, and this transaction needs to third quarter to complete, so the western data is unlikely in the short term buy-out performed again.
For adults, because Seagate hard drive shipments, net profit are lower than last year, and the western data in the fourth quarter of the net profit only 1.5 billion, up 71.85%, current financial downturn condition may not allow them to short-term trading on acquisitions.
Benefiting from the western data acquisition Hitachi hard disk business deals, Seagate won the downstream PC manufacturers order, reason is PC manufacturers wouldn't see western data make up most hard disk supply market. PC manufacturers in the western market share of hard disk data drop to less than 50% to calculate) (in shipments.
News says if samsung sold its hard disk business, the south Korean electronics giant future focus will shift to NAND flash memory devices.
|
|
Author Resource:-
My name is xia zihui from http://www.kneebracesandsupports.com, China Gynecological Bed, Surgical Lights, Lumbar Support Brace .
|
By :
Jessie Stone
Submitted
2011-04-24 06:52:01 |
Article From Article Mayhem
 Ezine ready view |
|
|
|
Related Articles
|
|
|
![[Valid RSS feed]](http://www.articlemayhem.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed![[Valid RSS feed]](http://www.articlemayhem.com/images/rss.jpg "XML Feed For RSS")