Feeds

Storage biggies lining up to buy Seagate?

New York Post gets excited

Secure remote control for conventional and virtual desktops

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That's reported by the New York Post, and the report follows on from Wall Street speculation that Bain Capital has withdrawn from the private equity bid consortium being put together by TGP Capital to take Seagate private.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

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ellison: Sparc M7 is Oracle's most important silicon EVER
'Acceleration engines' key to performance, security, Larry says
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Hey, what's a STORAGE company doing working on Internet-of-Cars?
Boo - it's not a terabyte car, it's just predictive maintenance and that
Troll hunter Rackspace turns Rotatable's bizarro patent to stone
News of the Weird: Screen-rotating technology declared unpatentable
prev story

Whitepapers

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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.