Feeds

Storage biggies lining up to buy Seagate?

New York Post gets excited

Choosing a cloud hosting partner with confidence

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That's reported by the New York Post, and the report follows on from Wall Street speculation that Bain Capital has withdrawn from the private equity bid consortium being put together by TGP Capital to take Seagate private.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

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
Seagate's triple-headed Cerberus could SAVE the DISK WORLD
... and possibly bring us even more HAMR time. Yay!
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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.