Seagate to buy Maxtor

Huh? According to The Inq, "Western Digital is the second hard drive manufacturer after Seagate, with Maxtor in third place". Since when? Was I sleeping? I noticed when Seagate overtook Maxtor once again to reclaim its traditional place at the top of the table (and was completely unsurprised by that: mergers practically never succeed in retaining the market share of the two individual companies after the merger - look at Seagate and Conner as an example) but since when did lowly Western Digital slip into second place? WTF?
 
Western Digital's sales increased significantly after StorageReview.com started to bless their Special Edition Caviar.

The news has been posted on the front page.
 
The sale include a $399 million rebate, but Seagate has to include the original UPC and a completed rebate form.
 
I fail to see the business advantage behind this. Unless Seagate wanted Quaxtor's additional factory capacity cheaper and faster than they could build themselves.
 
Will Rickards said:
What is to stop them from buying Western Digital now?
Click to expand...
From Nasdaq, at 14h33 earstern time :

MXO : 6.80$/share, quoted market value : 1.727B$

WDC : 17.86$/share, quoted market value : 3.852B$

What's stopping them? About 2.1 billion U$.
 
mubs said:
I fail to see the business advantage behind this. Unless Seagate wanted Quaxtor's additional factory capacity cheaper and faster than they could build themselves.
Click to expand...

It gets rid of a major competator (less competition means higher margins) - Increased market share - decreased manufacturing costs producing additional economies of scale. "Synergy". i.e the usual suspects.
 
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