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Wednesday, 20 April 2011 - Seagate buys Samsung hard disk unit |
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    Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Republicans attack Trump as he mulls 2012 run 2:21pm EDT Trump: My tax returns for Obama birth certificate 2:58pm EDT Governor vetoes birther, campus gun bills 10:37am EDT Republicans attack Donald Trump as he mulls 2012 run 3:18pm EDT RIM launches PlayBook, fans don't play along 2:42pm EDT Discussed 92 Palin returns with feisty, anti-establishment speech 83 Obama to lay out deficit plan with focus on tax, spending 74 UPDATE 1-Geithner says Congress will pass debt limit increase Watched VW unveils new sporty Beetle Mon, Apr 18 2011 Cupless bra combats cleavage crinkle Fri, Apr 15 2011 South Korean "super gun" packs hi-tech killing power Mon, Feb 14 2011 SMALL BUSINESS Patent battle hits Supreme Court A small Canadian firm's record $290-million patent victory over software giant Microsoft rests in the hands of the Supreme Court. Down to its final appeal, Microsoft argued a lower standard should be used, which could make some patents more vulnerable to legal challenge.  Full Article | Video  Microsoft-i4i fight has big patent implications A decade later i4i's battle with Microsoft nears finale Seagate buys Samsung hard disk unit Tweet Share this By Supantha Mukherjee and Miyoung Kim BANGALORE/SEOUL (Reuters) - U.S.-based Seagate Technology's $1.4 billion acquisition of Samsung Electronics Co's loss-making hard disk drive (HDD) business pits it head-to-head with Western Digital Corp in an... Email Print Related News Seagate Q3 profit lags 6:25am EDT Analysis & Opinion Tech wrap: Apple sues Samsung over “slavish” copies Common budget mistakes for tech startups Related Topics Technology » Deals » Global Deals Data 2011 Q1 » Inflows Outflows » Media » iPad » Stocks     A Samsung Electronics hard-disk-drive (HDD) is seen at an electric appliance store in Seoul, in this picture illustration taken April 18, 2011. Credit: Reuters/Truth Leem By Supantha Mukherjee and Miyoung Kim BANGALORE/SEOUL | Tue Apr 19, 2011 12:52pm EDT BANGALORE/SEOUL (Reuters) - U.S.-based Seagate Technology's $1.4 billion acquisition of Samsung Electronics Co's loss-making hard disk drive (HDD) business pits it head-to-head with Western Digital Corp in an industry that has been dogged by price wars. The sector is battling persistent sales growth declines and faces a longer-term threat from wireless tablet devices such as Apple's iPad that use more power-efficient flash, or solid state, drives (SSD). However, Seagate Chief Financial Officer Patrick O'Malley downplayed those concerns, saying increasing use of data would drive demand for storage. "We look at tablets as a good thing as they will spur data-rich consumption, which is certainly good for storage and HDD storage," he told Reuters by telephone. The rising popularity of tablets is expected to drive demand for external drives and for so-called 'cloud' storage -- or online data storage -- helping companies like Seagate. "SSD business is primarily in the enterprise space. Today, it is still a small percentage, but longer term it could be 5-10 percent of the total enterprise market," O'Malley said. "Mainframe enterprises -- the Yahoos and Googles of the world -- have a lot of storage needs." Both Seagate and Western Digital have been struggling to adapt to a future where fewer consumers have laptops and many view flash drive as the future of the disk drive industry. The deal will give Seagate access to Samsung's NAND-type flash chips for its solid state drive products. It comes just a month after Western Digital said it would buy the HDD unit of Hitachi Ltd -- a known price aggressor -- for $4.3 billion. The acquisition will increase Seagate's market share to 40 percent, while Western Digital and Hitachi combined will have around half the market, Rodman and Renshaw's Ashok Kumar said. "Hard disk drive is a commodity business. It's very hard to make money if rivals try to undercut each other," said Wedbush Securities analyst Kaushik Roy, noting there should be fewer price wars with only three players left standing. Toshiba Corp, which bought Fujitsu's HDD unit in 2009, will have around a 10 percent market share. Seagate had sales last year of $11.4 billion, while Western Digital posted 2010 revenue of $9.85 billion. For Samsung, the world's largest technology firm by revenue, 1 2 Next Technology Deals Global Deals Data 2011 Q1 Inflows Outflows Media iPad Tweet this Share this Link this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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