Feeds

Seagate shenanigans hide cunning plans

Privacy rules again, okay!

Intelligent flash storage arrays

Seagate has admitted it is discussing going private for the second time in a month.

In a statement it said "it has received a preliminary indication of interest regarding a going private transaction." Seagate is talking with the unnamed party concerned and "has retained Morgan Stanley & Co. Incorporated and Perella Weinberg Partners LP to provide financial advice and Wilson Sonsini Goodrich & Rosati and Arthur Cox as legal counsel." It isn't saying anything else.

In September it reportedly talked to Silver Lake and TPG Capital. The talks foundered because Seagate's estimates of its future earnings did not justify the valuation of the firm in the view of these two parties.

Various sources such as Bloomberg, Reuters and the New York Times identify the two parties involved this time as TPG Capital and Kohlberg Kravis Roberts and co. Seagate was capitalised at more than $6bn yesterday, which would make it a large deal.

Seagate went private in March 2000 and returned to public ownership in 2003. It has worked hard to correct missteps that took place since then under the leadership of CEO Bill Watkins, who was ousted in January 2009, with chairman Stephen Luczo taking on the CEO role. He is still in place.

There are signs that Seagate is making progress, such as the Momentum XT disk rive with an embedded flash cache providing near solid state drive performance when reading data. But there are also signs of faltering technological expertise, such as its 5-platter, 3TB drive seen in the FreeAgent GoFlex external storage line. WD has also introduced a 3TB external drive and this is a 4-platter unit, indicating WD has managed to achieve a higher areal density, giving it 750GB per platter instead of Seagate's 600GB per platter.

El Reg's working premise is that Seagate's executive leadership wants the company to go private so that it can restructure itself in some way and eventually return to the stock market in better shape than it is now.

HItachi GST, another hard disk drive manufacturer, is seeking to go public, if reports and various industry sources are to be believed. While one company wants to exit the stock exchange limelight, it seems another wants to step into it. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.