2023-10-31 18:44:42
Western Digital will no longer manufacture SSDs and HDDS. The information came through company announcement pagewhere it was said that the Board of Directors approved the separation of the HDDs and SSDs businesses, creating two independent public companies, which will have a specific strategic market focus, allowing each to develop innovative technologies for upcoming launches.
SSDs and HDDs will no longer be manufactured by Western Digital
Western Digital’s SSD and HDD business is spun off. Source: Unsplash (Photo by Michael Kahn)
According to Western Digital, this decision to separate the SSD and HDD businesses was made following a thorough evaluation of a wide variety of alternatives. Western Digital CEO David Goeckeler says:
During our strategic review process, we thoroughly evaluate strategic transactions that might add value to Western Digital. However, given the current constraints, it has become clearer to the Board in recent weeks that delivering an independent separation is the right next step in Western Digital’s evolution and puts the company in the best position to unlock value for our shareholders.
We are now emerging from a historic cyclical downturn in storage, where every change made in recent years is evident in the performance of each business relative to its peers. Moving forward, as we move into fiscal 2024, we see an improving market environment across both businesses and will remain open to strategic opportunities that unlock more value in our HDD and Flash investments and assets.
David adds that the future of the SSD and HDD divisions is promising.
Our HDD and Flash businesses are well-positioned to capitalize on the significant market dynamics of the data storage industry and, as separate companies, each will have the strategic focus and resources to pursue opportunities in their respective markets. Importantly, the separation of these franchises will unlock significant value for Western Digital shareholders, allowing them to participate in the upside of two industry leaders with distinct growth and investment profiles.
We have already laid important foundations by building market-leading portfolios and improving the operational efficiency of each business, including creating separate Flash and HDD product business units and separating operational capabilities over the past few years. Additionally, we now have strong operational, financial and product leadership to execute this plan successfully. Each company is in a strong position to succeed on its own, and the actions we announce today will enable each company to drive long-term success for years to come.
SanDisk merger with Western Digital automatically canceled following decision
According to the website TheVerge, Western Digital purchased SanDisk in 2016 for $19 billion. However, the The Wall Street Journal diz that the decision to separate the SSD and HDD businesses will reverse this merger. The separation is expected to take place in the second half of 2024.
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