Samsung Sells Hard Drive Business to Seagate for $1.375B
Posted: Thu Apr 21, 2011 9:31 am
Hot Hardware
Not too surprising, I think most people knew that Samsung was looking for a buyer. I'm curious if this will help or hinder the industry though.Well that was fast. A day after an anonymous source told The Wall Street Journal that Samsung was shopping its hard drive business in hopes of raising $1.5 billion, the electronics maker found a buyer. Seagate today announced a "broad strategic alignment" with Samsung that, among other things, will give Seagate control of Samsung's struggling hard drive business in a deal worth $1.375 billion (half in cash, the other half in stock).
Under terms of the deal, Seagate agrees to supply disk drives to Samsung for PCs, notebooks, and consumer electronics. The deal extends beyond hard drives and also extends and expands the existing cross-license agreement between the two companies, as well as a new NAND flash memory supply agreement that has Samsung providing Seagate with semiconductor products for use in Seagate's enterprise SSD, solid state hybrid drives, and other products.
