Friday, September 8th 2017

Western Digital Looking Towards Apple for Additional Funds in Toshiba Bid

The partial spin-off of Toshiba's memory production business, which should see the company shed around 20% of its memory business production stake, still has a lot of water to run under the bridge. Reports said that Toshiba would be suing Western Digital, which Toshiba said tried to continuously interfere with the bidding process, it seems that Western Digital isn't looking to back down any time soon. Reuters is reporting that Western digital is now looking to Apple to bolster its bidding position by another 50 billion Yen (around $464 million) to increase the likelihood of acceptance.

Granted, that is somewhat of a fraction of Western Digital's $17 to $18 billion bid for the chip business, but any increased amount of investment is likely to only sway the decision towards WD, who has a joint venture with Toshiba towards furthering memory semiconductor technology. Even though Toshiba has already elected a preferred bidder, nothing is closed as of yet. That Western Digital is looking towards Apple is slightly surprising, but begins to look less so the more you think about it: Apple is one of the foremost buyers of memory semiconductors in the industry; pricing for both flash and DDR memory has seen price hikes in the past due to increased production of iPhones, after all. It's in Apple's best interests to have an amenable partner in the memory production business, which is why an Apple aid for Western Digital might turn out advantageous for the company. Toshiba executives, fearing that WD might be angling to eventually take over the chip business (which isn't unreasonable), are demanding that the U.S. company promise to limit the size of its stake in the company. Toshiba's board is now aiming to reach a final agreement with the consortium by Sept. 13.

Source: Reuters
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2 Comments on Western Digital Looking Towards Apple for Additional Funds in Toshiba Bid

#2
StrayKAT
MrGenius said:
Or not...http://www.nextpowerup.com/news/38250/apple-pressures-western-digital-not-to-acquire-toshibas-flash-memory-business/
I hope they both come out on top. Samsung needs more competitors (and a Japanese and US one at that). I personally prefer WD makes their way into this space though. I almost hate to admit it, but I actually bought a WD Black nvme... even though it's far inferior to 960evo lol. Although, it was cheaper, I could have easily got the Samsung for $30 more. I just hate them as a company.
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