Western Digital buys SanDisk for $19 billion

Looks like the rumor mill was right. Western Digital is buying SanDisk for $19 billion, or $86.50 per share, according to a joint announcement by the companies this morning. WD says that the takeover will give it "deep expertise in non-volatile memory" and allow it to play in "higher-growth segments"—code for SSDs, we're guessing.

SanDisk's joint venture with Toshiba will be carried on as part of the deal. WD says continuing the partnership gives it access to a large, stable NAND flash supply, and it also says that it'll get a competitive advantage by vertically integrating that flash into its operations.

The deal will be financed through cash, debt, and Western Digital stock. The hard drive maker expects to take on $18.4 billion of new debt as part of the buyout. WD CEO Steve Milligan will continue to lead the combined company, while SanDisk CEO Sanjay Mehrotra will join the WD board of directors. If all goes well, the companies expect the deal to be complete by the third quarter of 2016.

Comments closed
    • just brew it!
    • 4 years ago

    Western Digital really has become the Borg of storage. Let’s hope they don’t wreck SanDisk the way they wrecked SiliconSystems; they’ve done this “let’s acquire some SSD IP and expertise” once already, and it did not end well.

      • Krogoth
      • 4 years ago

      So that would make Seagate the Dominion of storage eh?

    • NeelyCam
    • 4 years ago

    My Sandisk Sansa Clip+ died last weekend. It made me very sad.

      • just brew it!
      • 4 years ago

      I bought a spare when they ended production and prices on remaining stock started to edge up. I should be good for a few more years, provided the battery holds up.

    • bjm
    • 4 years ago

    Why the sadness here? I’ve had great experiences with Western Digital. When things went south, their RMA process is one of the easiest I’ve dealt with.

      • TruthSerum
      • 4 years ago

      The best media company in my experience over the last 20 years, period.

      I’m totally basing this on my anecdotal experiences, not any hard data, prefaced thus.

      • Umbral
      • 4 years ago

      I don’t understand it either, I’ve had nothing but great products and service from both companies. The two seem like a natural fit. Granted, WD get more out of the deal than SanDisk, but I guess that’s why they’re buying. Duh.

      • JMccovery
      • 4 years ago

      Look at it this way: if WD lets Sandisk operate as usual, then everything is good; if they stick their fingers into the technical operations of Sandisk to possibly ‘reduce operating costs’, the whole thing may go to crap.

      • egon
      • 4 years ago

      And one of the worst I and many other Australians dealt with – if a drive failed, WD’s RMA process was for the customer, at their own expense, to send it to [i<]overseas[/i<] service centre. Have also noticed they've taken contact details provided during RMA and shared them with their marketing department (two years after an RMA, the unique e-mail address used for RMA started getting WD Store spam).

    • fhohj
    • 4 years ago

    well this sucks pretty bad.

    • albundy
    • 4 years ago

    there goes my 10 year extreme pro ssd warranty!

    • NovusBogus
    • 4 years ago

    Damnit, there goes the storage industry.

    • TheJack
    • 4 years ago

    There is a chance that they may regret this purchase, if the upcoming xpoint tech from Intel takes off and eats into the NAND margins. Just a thought.

    • WhatMeWorry
    • 4 years ago

    “Anheuser-Busch, the St. Louis-based maker of Budweiser, agreed Sunday to accept a $52 billion buyout offer from Belgium’s InBev, home to brands such as Stella Artois and Beck’s”

    I think this says all you need to know about where our priorities lay.

      • chubbyhorse
      • 4 years ago

      Fact: That’s been some number of years now. However, AB InBev has extended an offer, and it has been accepted to purchase SABMiller, makers of Miller (Light), Fosters, etc.

      Sauce: [url<]https://en.wikipedia.org/wiki/Anheuser-Busch_InBev[/url<]

      • w76
      • 4 years ago

      If you’re suggesting my priority is beer, then… Yes. Yes it is.

    • Shambles
    • 4 years ago

    After what WD and Seagate did to the HDD market I won’t touch anything sandisk now.

      • Dygear
      • 4 years ago

      What are you smoking?

      • TruthSerum
      • 4 years ago

      Thai floodsticks.

    • HisDivineOrder
    • 4 years ago

    Well, there goes one of the goodies. Too bad. I guess I should be happy it’s not Seagate.

      • chucko
      • 4 years ago

      Little did you know…

      [url<]http://www.storagenewsletter.com/rubriques/mas/seagate-acquires-wd-for-16-billion-new-company-named-seawest/[/url<]

    • Prestige Worldwide
    • 4 years ago

    Daaaaaaaaaaaaaaaaaamn.

    • chuckula
    • 4 years ago

    [quote<]Western Digital buys SanDisk for $19 billion[/quote<] Holy Crap. I mean, SanDisk likes to charge a premium for the name, but I can get you a much better deal on Amazon than $19 Billion!

      • stdRaichu
      • 4 years ago

      We’re in the middle of a consolidation war. Next week, facebook will buy amazon for $42 billion, Dell/EMC will buy facebook for $198 billion, twitter will buy facebook for $493 billion, instagram will buy twitter for $787 billion, zynga will buy instagram for $912 billion, AMD will buy zynga for $1367 billion, valve will buy AMD for $3.333 trillion and EA will buy valve for $5 hojillion.

        • ColeLT1
        • 4 years ago

        You can’t rule out the possibility that AMD buys out, then admits it paid too much, claims a one time loss of 912 billion on its quarterly reports and shutters the business.

        • anotherengineer
        • 4 years ago

        Then Google will buy them for 1 googol!!

        • w76
        • 4 years ago

        [quote<]We're in the middle of a consolidation war. [/quote<] That's what happens when we force interest rates at nothing-point-nothing percent; the business logic of bulking up on astronomical amounts of debt just make sense. There's a dangerous angle to this, for business and governments both: as they binge on debt which central banks intentionally make cheap, central banks lose the ability to take away the punch bowl, because it could directly cause a wave of bankruptcies, meaning the longer this goes on the more central banks lose power. Anyway, at least this deal has a certain logic to it, WD has partly fallen off the tech radar in light of SSD prices falling.

          • sweatshopking
          • 4 years ago

          yeah but the people causing the shots will be fine no matter what.

        • Wirko
        • 4 years ago

        Yeah, I was about to say something similar but featuring AMD, Adobe, Oracle, LG, ARM, Google, Samsung, MS and Apple, in this order, approximately. It has become so easy to tell the future using nothing more than extrapolation, right?

        • Wirko
        • 4 years ago

        Also, ftfy: X will spend less money to buy AMD than AMD will spend to buy Y beforehand.

    • mvp324
    • 4 years ago

    Is SanDisk, still considered the supplier for must USB flash/SD cards (not SSD) to other vendors (Samsung and such)? I ask, because I remember that most were re-branded items.

      • davidbowser
      • 4 years ago

      Exactly what I was thinking. The SD card business was something that Sandisk pretty much owned (patents IIRC).

        • Visigoth
        • 4 years ago

        Indeed. IIRC, they have even invented a nice filesystem specifically intended for flash-based drives.

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