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In some alternate universe, perhaps Western Digital is able to acquire Seagate and instantly more than double its hard drive sales. But in this one, Seagate ultimately scoffed at WD's takeover proposal, or so that's the story "two people with knowledge of the matter" say, according to a Bloomberg report.
The sources say WD was willing to fork over anywhere from 10 percent to 50 percent mor than TPG Capital, another firm that unsuccessfully tried to acquire Seagate. When news of WD's proposal hit the news wire, Seagate's stock surged 7.2 percent. So why didn't Seagate bite?
Both companies declined to comment, but the general consensus is that such a mega-deal would have sparked an antitrust investigation. On top of that, some management personnel would likely have lost their jobs.
Seagate's market value currently sits at about $6.9 billion. Western Digital, despite reporting lower sales than Seagate, is worth about $8 billion.