Feeds

Seagate ends talks to go private

No go ho ho

Secure remote control for conventional and virtual desktops

Comment Seagate has ended discussions with interested parties about going private.

The discussions failed to agree on how much the firm was worth with the private equity buyer – understood to be TGP Capital – placing a lower value on Seagate shares than Seagate's board.

But the world's largest hard drive maker did have some good news to go with the announcement.

It is spending $2bn on buying back its own shares - which should help bolster their price, and therefore please shareholders. It also said channel inventory was looking good, with 170m units sold. It expects sales of $2.7bn for the quarter ending 30 December and gross margins of 19.5 per cent.

Why did Seagate's board want a private equity buyout option? Was it just to get some cash for shareholders and then, when the firm went public again, make a killing for the private equity backers and those shareholders who had kept their shares?

Or was there serious company restructuring and refocusing to accomplish? In that case whatever needs to be done still needs to be done.

Perhaps Seagate would be better off having a full-time chief executive officer working on the problem rather than the existing combined chairman and CEO. ®

Security for virtualized datacentres

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
NATO declares WAR on Google Glass, mounts attack alongside MPAA
Yes, the National Association of Theater Owners is quite upset
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
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.
Reducing the cost and complexity of web vulnerability management
How using vulnerability assessments to identify exploitable weaknesses and take corrective action can reduce the risk of hackers finding your site and attacking it.