Seagate Scoops Up Samsung's Hard Drive Business for $1.375 Billion
Seagate Scoops Up Samsung's Hard Drive Business for $1.375 Billion
Posted 04/19/2011 at 6:06am
| by Paul Lilly
10
Comments
Print
As of today it's official, Samsung is out of the hard drive business and significantly richer as a result. Samsung reportedly hoped to pull in $1.5 billion but was willing to entertain offers below $1 billion. Turns out the company didn't have to, as Seagate stepped up to the plate with a $1.375 billion offer, half of which it will pay in cash and the other half in stock. Samsung will also receive a 9.6 percent stake in Seagate, but there's more to this deal than hard drives, cash, and stock.
The two sides also used the deal to extend and enhance their existing patent cross-license agreement, ensuring that the two remain BFFs after money changes sides. In addition, Samsung agreed to provide Seagate semiconductor products for use in Seagate's enterprise solid state drives, solid state hybrid drives, and other products.
Other terms of the deal include:
- Seagate will supply disk drives to Samsung for PCs, notebooks, and consumer electronics
- Expanded cooperation between the companies to co-develop enterprise storage solutions
- A shareholder agreement under which an executive of Samsung will be nominated to join Seagate's Board of Directors
"We are pleased to strengthen our strategic relationship with Samsung in a way that better aligns both companies around technologies and products," said Steve Luczo, Seagate chairman, president and CEO. "With these agreements, we expect to achieve greater scale and deliver a broader range of innovative storage products and solutions to our customers, while facilitating our long-term relationship with Samsung."
This is one of those cases where both sides appear to come out ahead. Samsung, which was losing money on its hard drive business, suddenly receives an infusion of cash and stock, but there's more here than a simple sale. The deal was just as much about a "broad strategic alignment" as it was the sale of a diminishing HDD business.
Image Credit: Flickr (Robert Scoble)
More like this
10
Comments
Comments are closed on this article
allan_browver
June 29, 2011 at 3:41pm
Samsung products are good, I agree with this. I used to work as a promoter for Samsung. I didn't know anything about their products at that point and I actually hated it because they made me wear some ridiculous name badges and I felt weird. After some time I realized that Samsung means quality!
poola911
April 21, 2011 at 3:43am
Hey - precise website, meet sensing around any blogs, seems a pretty prissy level you are using. I'm currently using Wordpress for a few of my sites but perception to alteration one of them over to a level analogous to yours as a endeavor run. Anything in component you would advocate virtually it?
Nice
rent a car miami beach || SAN JOSE Moving Company || detroit moving companies || Moving Company INDIANAPOLIS || SEATTLE Moving
Keith E. Whisman
April 19, 2011 at 3:35pm
We could very possibly be witnessing the suicide of the spinning platter hard drive as they gobble each other up and then the few that are left go out of business leaving no one left.
timlider
April 19, 2011 at 12:57pm
Well that leaves 3 Hard drive Manufactureres left. They would be Seagate, Toshiba and Western Digital.
I remember where ther ewas over 1,000. Wow!
JohnP
April 21, 2011 at 12:57pm
Dang! I love my Spinpoint Samsung drives! I have over a dozen of them. None have ever failed, they are quiet, and run cooler than other drives I have owned.
Now what am I going to buy?
Heh, more spinpoint drives. Still on Newegg at a great price ($80 for 2TB drive anyone?)
StarWolf
April 19, 2011 at 8:32am
Samsung made horrible hard drives, at least in the past.
Let us hope that this agreement will make Seagate drives more reliable as they seem to be dieing faster than older drives.
I still love Seagate.
CaptainFabulous
April 19, 2011 at 10:32am
Actually Samsung drives are some of the best out there. I will never ever again buy a Seagate drive. Now we have painfully few choices as there's Western Digital and Toshiba.
Danthrax66
April 19, 2011 at 8:38am
They haven't made a bad drive in a while. All of the new drives (Spinpoint F1, F2, F3, F4) have been by far the best hard drives on the market. Seagate and WD have been crap lately and Samsung should have been the king but appearatly no one knew about it :(
I_pwn_newbz86
April 19, 2011 at 7:46am
This is great news. Samsung and Seagate were my two of my three favorite hard drive manufacturers ( the third being Hitachi ).
Caboose
April 19, 2011 at 8:59am
And now Hitachi are owned by Western Digital.
That leaves proper RAIDable drive manufacturers down to 1. Seagate. WD's can't RAID properly.
Connect with MaximumPC
Featured Content
The gang discusses the GTX 690, Trinity, Ivy Bridge, Amazon, big-box stores, MMOs,...
This month's issue
Feature
Build a PC On Any Budget
Feature
Cloud Services Showdown
How-To
Encrypt Your External Drive
Build It
Upgrade an X58 Rig
Most Commented Articles
Latest Max PC Tweets
- maximumpc: Original RickRoll Video Returns to YouTube After 24-Hour Copyright Hiatus http://t.co/MaH9Sxyy1 day 23 hours ago
- maximumpc: Corsair has decided not to go forward with its $78 million IPO, citing weak equity market conditions http://t.co/A5a4DAzj1 day 23 hours ago
- maximumpc: Want to work at Maximum PC? Our Online Managing Editor, Alex, is moving away, so we need a new one. http://t.co/9Z7JCh0E3 days 21 hours ago
