Western Digital SanDisk Merger Approved, Finalizes May 12

Posted by at 2:07 pm on May 10, 2016

Western Digital logo[1]Western Digital announced the $19 billion SanDisk acquisition in October 2015 and that its shareholders approved the acquisition in March 2016, which left MOFCOM (the Chinese Ministry of Commerce) approval as the only remaining barrier to the merger. WD announced today that it has received regulatory approval from MOFCOM to proceed, and the transaction closes on May 12–a scant two days away.

SanDisk is one of the early leaders of NAND development and holds over 5,000 patents, but broader management issues led to a dramatic weakening of the company’s prospects last year. The resultant crash of SanDisk’s stock price opened the door for WD to step in and purchase the company.

The SanDisk acquisition brings the WD development effort full circle and clears the way for it to transition to a systems provider and flash powerhouse. (Make no mistake, that is the end game for WD/HGST.) The acquisition will allow WD to upsell and cross-sell with both new and existing customers. It also serves as a new tool that WD can use to pry Seagate out of other segments.

Leave a Reply

Sign Up For Our Newsletter

Sign up to receive breaking news
as well as receive other site updates

Enter your Email


Preview | Powered by FeedBlitz

Log in

Copyright © 2008 - 2024 · StreetCorner Media , LLC· All Rights Reserved ·