Feeds

Storage biggies lining up to buy Seagate?

New York Post gets excited

Beginner's guide to SSL certificates

Comment It's either on the button or way over the top; a possible buyer for Seagate could be one of rivals Western Digital, Toshiba or Samsung.

That's reported by the New York Post, and the report follows on from Wall Street speculation that Bain Capital has withdrawn from the private equity bid consortium being put together by TGP Capital to take Seagate private.

There have been widely reported stories that TGP is aiming for this against a background of the steady rise of NAND flash storage as an alternative to hard disk drive storage, and the coming costly disk drive technology transition from today's perpendicular magnetic recording to a follow-on technology that can go past 1Tbit/in2 and possibly reach 4Tbit/in2

It has always seemed logical that, in a disk drive industry where unit volume is the key to profitability, further consolidation of suppliers is more likely than a private equity group taking over Seagate. The private equity ownership route is generally the way for a previously publicly-owned company to do major corporate restructuring, before coming back to the market and making a lot of money for its private equity backers.

The apparent problem facing TGP and its partners is Seagate's projected revenues, meaning that it may not be able to service private equity debt en route to a flotation as well as fund whatever it is that it needs to do behind the private ownership wall.

It may be an unpalatable choice for Seagate's board though, selling the company to a rival instead of remaining independent. Acquisition by Western Digital, Toshiba or Samsung would be seen as a defeat. For Toshiba and Samsung, such a deal - buying one of the USA's crown jewels in technology terms - could be very attractive indeed. ®

Remote control for virtualized desktops

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.