Feeds

Seagate to buy Samsung's disk drive biz?

And then there were three

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Seagate brings out 6TB HDD, did not need NO STEENKIN' SHINGLES
Or helium filling either, according to reports
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
USA opposes 'Schengen cloud' Eurocentric routing plan
All routes should transit America, apparently
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.