Feeds

Seagate to buy Samsung's disk drive biz?

And then there were three

Internet Security Threat Report 2014

Seagate may buy Samsung's hard disk drive business, according to the Wall Street Journal.

Samsung wants as much as $1.5bn for the loss-making unit but may take less than $1bn. We understand Seagate chairman and CEO Stephen Luczo is spending up to three months in the Far East, convenient for talking to Korea-based Samsung.

With Western Digital buying Hitachi GST, Hitachi's hard disk drive (HDD) business, and thereby gaining an an approximate 50 per cent market share by revenue, Seagate lost its leadership position, having a roughly 30 per cent share. A purchase of Samsung would send this towards 40 per cent.

The hard disk drive industry would then be divided between Western Digital, Seagate and Toshiba, which has an approximate ten per cent share.

Samsung manufactures 3.5-inch EcoGreen and Spinpoint drives with capacities up to 2TB. It does not yet have a 3TB offering. It is also present in the 2.5-inch sector with Spinpoint and S3 Portable up to 640GB capacity. Were Seagate to buy the Samsung HDD business it is likely these brands would be transitioned to the equivalent Seagate brands.

The HDD business is a volume manufacturing game and Samsung's volume is too low for it to make serious money from spinning platters. Seagate indicated in a recent preliminary earnings statement it might be considering initiatives of this kind.

There is only one potential purchaser other than Seagate and that is Toshiba, which has no 3.5-inch drives in its portfolio.

Could Toshiba be considering an exit from the HDD business as well? That's a fascinating possibility and would, if Seagate bought the operation, produce two nearly equally-matched manufacturers, Seagate and Western Digital, both with around half of the HDD market. ®

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.