Feeds

Toshiba may be getting excess WD disk biz

Rumour mill spits out Tosh as buyer

The essential guide to IT transformation

We are hearing that Toshiba is buying Western Digital's "excess" 3.5-inch disk drive business, clearing the way to the completion of the WD's acquisition of Hitachi GST .

The Hitachi GST acquisition has been blocked by EU and Chinese regulators due to competition concerns. The EU has required WD to offload some 3.5-inch hard disk drive capacity to prevent an undue concentration of the manufacturing in the sector.

According to our contacts Toshiba is getting a license for 3.5-inch nearline HDD intellectual property, business commitments including the supply of some amount of HGAs (Head Gimbal Assemblies), and a Hitachi GST plant in China.

Back in November, 2009 Toshiba said it wanted to enter the 3.5-inch HDD business. It now looks as if it is going to get a WD leg-up into that area of HDD supply. It had also been thought the Great Wall business in China was an alternative purchaser to Toshiba.

No information about the financial terms is available, but if the approval processes don't complete by 7 March there will be a $250m termination fee to be paid to HGST, sources report. The deal is done and will close before the end of March, we're told.

WD's head PR Honcho, Steve Shattuck, wasn't able to confirm the details, saying: "I know nothing about that." Even if the deal has actually been done we wouldn't expect WD to say anything until all the announcement ducks were lined up. To do otherwise is simply not the WD way.

Toshiba was not immediately able to respond to questions.

What we have here is a hot little tip in our sticky mitts about some very hot news and no confirmation. Take it for what it is and don't bet anything substantial on it until we get an official yea or nay from Toshiba and WD. ®

Boost IT visibility and business value

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.