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Western Digital To Aquire SanDisk For $19 Billion

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mocoworm

Member
http://techcrunch.com/2015/10/21/western-digital-to-aquire-sandisk-for-19-billion/?sr_share=facebook

Western Digital just bought a bunch of memory cards. The storage giant just announced that it has agreed to buy SanDisk Corp for about $19 billion. This comes after speculation that SanDisk was shopping for a buyer.

The deal values SanDisk at $86.50 a share, which is a 15% premium on the previous day’s closing price, giving the company a value of $15.4 billion. SanDisk is currently up 4.78% in pre-market trading.

This deal brings together two of the largest storage companies. In many ways, SanDisk, with its deep investment in flash memory chips represents a future without the spinning disk hard drives of Western Digital. Yet despite early explosive growth, SanDisk as of late reported results that have lagged behind expectations. Likewise, Western Digital has watched its core business slip away as the industry moves towards flash memory.

SanDisk CEO Sanjay Mehrotra is expected to join the Western Digital board upon the closing of the deal. Western Digital CEO Steve Milligan will continue in that role.
 

xptoxyz

Member
Not good for consumers

They weren't competing brands so it's not elimination competition. (WD as far as I'm aware had no solid state, and Sandisk no mechanical or enclosures).

Is WD regarded as bad quality products when compared? I thought they were usually second or so in mechanical disk reliability?
 

wwm0nkey

Member
They weren't competing brands so it's not elimination competition. (WD as far as I'm aware had no solid state, and Sandisk no mechanical or enclosures).

Is WD regarded as bad quality products when compared? I thought they were usually second or so in mechanical disk reliability?
WD isn't bad at all, Seagate is the one that needs to die

But yeah it's a smart move for WD, SSD prices are starting to get really low and they need to be in that market.
 
Makes sense for WD. Hard drive revenue will disappear as solid state prices drop.

Only on the consumer end. I don't think SSD is adequate for servers yet.

Edit: Though what you say is still true. Their revenue would drop, so it's a good purchase for WD.
 

wwm0nkey

Member
Only on the consumer end. I don't think SSD is adequate for servers yet.

Edit: Though what you say is still true. Their revenue would drop, so it's a good purchase for WD.
Consumer end is a big market though lol

Also random, does anyone know when/if we are expecting a big price drop in SSDs? I was hearing something about 3D stack tech driving prices down fast soon
 
Even if true, that's still a big hit to their revenue they'll need to replace. This fits the bill.

I'm assuming Sandisk makes money? Haven't looked into it or anything.

You are right. I had read your previous post differently and then reread it after posting. SanDisk at least makes money off their thumbdrives. We have hundreds of them at work purchased in bulk from a government/education supplier. Haven't used any of their SSDs though.
 

OmegaSkittle

Neo Member
Consumer end is a big market though lol

Also random, does anyone know when/if we are expecting a big price drop in SSDs? I was hearing something about 3D stack tech driving prices down fast soon

SSDs have been dropping in price relatively quickly lately. Just the other day I saw a Samsung 850 EVO 500gb SSD for $144.

Expect great SSD deals this Black Friday.
 

wwm0nkey

Member
SSDs have been dropping in price relatively quickly lately. Just the other day I saw a Samsung 850 EVO 500gb SSD for $144.

Expect great SSD deals this Black Friday.
That's what I'm waiting on, my 120 has done well, but cloning it to a 500GB SSD will be better lol also I can use the 120 for applications and games until it fills up
 

P44

Member
Not good for consumers

No, it's pretty good for consumers. WD didn't have much in the SSD space, this let's them get a foot in. We haven't lost anything, in fact the expertise WD have in the storage space, the reliability of WD drives, we've probably gained something - a company that has the resources to compete with the top dogs of the SSD market.

Not every takeover is instantly a bad thing, and it's reactionary and overly knee-jerky to dismiss a takeover as 'bad for consumers'.

Google's takeover of Motorola was fantastic, for example, we got some good-ass handsets for a while, from a company that hadn't been relevant for a while. Lenovo's takeover of Motorola does not seem to be so positive, with delayed updates to the OS software.

Same company, two takeovers, different impacts for consumers.
 

Shirow

Banned
Both companies were losing money. In the end it isn't one company that was harming the other.

It's the cloud. This move is just a desperate move that won't matter in the end.
 
Both companies were losing money. In the end it isn't one company that was harming the other.

It's the cloud. This move is just a desperate move that won't matter in the end.


Yep. It is usually a bad sign for a market when large players in that space start merging.
 
It's the cloud. This move is just a desperate move that won't matter in the end.

"The cloud" is just servers stored somewhere else, often with hard drives made by Western Digital.

I feel like people underestimate the server side of WD's operation. That's why they're acquiring Sandisk instead of the other way around.
 
Both companies were losing money. In the end it isn't one company that was harming the other.

It's the cloud. This move is just a desperate move that won't matter in the end.
Where do you think cloud data is stored though? It's certainly not in air, like actually clouds.
 

Brazil

Living in the shadow of Amaz
Both companies were losing money. In the end it isn't one company that was harming the other.

It's the cloud. This move is just a desperate move that won't matter in the end.

The magical cloud, killing storage companies and making Xbox a monster in a single day.
 

MrChom

Member
WD isn't bad at all, Seagate is the one that needs to die

But yeah it's a smart move for WD, SSD prices are starting to get really low and they need to be in that market.

This. Seagate's fail rate over 5 years is atrocious for some of their common drives.

When I was still working schools IT I think I filled our NAS box twice over with replacement Seagates that just failed, got sent back, and failed again.

WD at least seem VAGUELY competent....I'm not saying their drives never fail...but I use them for consumer level stuff.
 

AP90

Member
Consumer end is a big market though lol

Also random, does anyone know when/if we are expecting a big price drop in SSDs? I was hearing something about 3D stack tech driving prices down fast soon

To my knowledge I thought as of right now only Samsung was using the 3D Stack tech and was still charging crazy $$ for a slight performance bump in read and write speeds.

The going rate for a decent 500-512gig SSD is $150-$175 at the moment (Crucial and Sandisk have been very good to me). If you go Samsung, that price is for a 256gig model with some 'extra' performance, which is not worth the added price IMO.
 
Huh. My future plans of getting a cheap SanDisk SSD would be quite funny, as that would mean I have a WD SSD + WD HDD. That's a lot of WDs.

Can't wait to see what they can come up with after that. IIRC, they did collaborate a bunch of times with their hybrid stuff, no?
 
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