Monday, February 27, 2017
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Oppo Brings 5X Optical Zoom To Dual-camera Smartphones
Kingston Ships 2TB USB Flash Drive
One-Blue Lowers Blu-ray Licensing Fees
Twitch to Sell Video Games on Streaming Site
Personal Computing Devices Outlook Remains Mildly Negative, Detachable Tablets And Convertible Notebooks See Growth
Gionee Launch New Selfie-focused A1 And A1 Plus Smartphones
RICOH R 360-degree, Live Streaming Camera Available For Pre-order
SD Association Adds Higher App Performance Class And Low Voltage Signaling
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > PC Parts > Seagate...
Last 7 Days News : SU MO TU WE TH FR SA All News

Wednesday, December 21, 2005
Seagate Seen Buying Maxtor


Seagate Technology, the giant digital storage company, reached a deal yesterday to acquire a rival, the Maxtor Corporation, for $1.9 billion in stock, according to executives involved in the transaction.

The deal, which was approved by the boards of both companies, is expected to be announced as early as today, according to NY Times.

Seagate's acquisition comes as the market for digital storage is booming. Corporations and individuals are saving vast numbers of files that are ever increasing in size, especially with the rising number of audio and video files.

Still, the disk drive market - which has been on a faster technology track than the computer chip world as measured by the rate of increase of storage density - has been brutally competitive with dozens of foreign entrants keeping prices low.

Under the terms of the deal, Maxtor shareholders will receive 0.37 share of Seagate stock, the equivalent of $7.25 a share. That is a 60 percent premium over the price of Maxtor's shares.

When the deal is completed Seagate investors will own about 84 percent of the combined company and Maxtor shareholders about 16 percent.

For Seagate, the deal is rather is a gamble that it can utilize its manufacturing infrastructure to make Maxtor's disk drives at a lower cost.

Maxtor lost money in four of the five most recent quarters and two of the last three years. The most significant challenge for Maxtor, based in Milpitas, Calif., is that it has not been a factor in the market for mobile disk drives, which are used in portable computers and in MP3 music players like the Apple iPod.

In the slower-growing but still strong market for desktop drives, Seagate has been the market leader followed by Western Digital and Maxtor.


Previous
Next
Samsung Adds DMB Features to its D600 Mobile Phone        All News        Ritek, CMC Magnetics Expect Significant Growth in 2006
Toshiba to Highlight PMR and 0.85-Inch HDD at 2006 Storage Visions Conference     PC Parts News      Elpida Memory Ships 80nm 2Gbit DDR2 SDRAM Samples

Get RSS feed Easy Print E-Mail this Message

Related News
Seagate Introduces Game Drive for Xbox Halo Wars 2 Special Edition
HGST Proved The Most Reliable Hard Disks According To Latest Backblaze Stats
Seagate On Track To Deliver 20TB Hard Drives By 2020
DJI and Seagate Partner to Advance Data Solutions for the UAV Ecosystem
Seagate, SK Hynix To Team Up On Enterprise SSDs
Seagate Introduces Cloud-syncing Portable Hard Drive for Amazon Drive
Seagate Releases 10TB IronWolf Pro For Small-To-Midsize Enterprises
Seagate Introduces 5TB Mobile Drive, New ClusterStor System For HPC Applications
Seagate Launches 512GB SSD For The Xbox
Seagate 6th Generation High-Speed Enterprise Performance HDD
Seagate Launches Two New BarraCuda Drives
Seagate Invited ValueAct To Become A Major Shareholder

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2017 - All rights reserved -
Privacy policy - Contact Us .