Business, Enterprise

Seagate-Samsung Analysis: The Book Drops to Three Letters

Seagate and Samsung recently announced a broad agreement that the two companies will "combine" their HDD businesses. Seagate will pay Samsung $1.38 billion, half cash and half newly-issued shares of Seagate stock, which will result in Samsung owning 9.6% of Seagate, earning Samsung a nomination for a position on Seagate’s board. Seagate recently launched enterprise-grade MLC and SLC SSD’s carrying Samsung NAND flash chips and an in-house developed memory controller In addition, the companies entered into sourcing agreements, with Samsung supplying NAND Flash to Seagate for SSDs and Hybrid HDDs, and Seagate supplying HDDs to Samsung for PCs, notebooks, and consumer electronics. The companies will