Western Digital Announces Review of Strategic Alternatives

[btarunr]

Western Digital Corporation, ("Western Digital") (Nasdaq: WDC) today announced that it is reviewing potential strategic alternatives aimed at further optimizing long-term value for its shareholders. The Executive Committee of the Western Digital Board, chaired by Western Digital CEO, David Goeckeler, will oversee the assessment process and fully evaluate a comprehensive range of alternatives, including options for separating its market-leading Flash and HDD franchises. Following constructive dialogue with many of Western Digital's shareholders, including one of the company's largest investors, Elliott Investment Management L.P. (together with its affiliates, "Elliott"), this review builds on Western Digital's ongoing efforts to drive innovation-led growth and create shareholder value.

"The Board is aligned in the belief that maximizing value creation warrants a comprehensive assessment of strategic alternatives focused on structural options for the company's Flash and HDD businesses," said Goeckeler. "Through this process, we are actively engaging in a broad range of strategic and financial alternatives that will help further optimize the value of Western Digital, including Elliott's offer to invest incremental equity capital in our Flash Business. We look forward to continuing our constructive dialogue with Elliott as this process unfolds."

Elliott Managing Partner Jesse Cohn and Senior Portfolio Manager Jason Genrich said, "Western Digital is strongly positioned in an industry that represents a compelling growth opportunity, and we have confidence in David and his management team's execution, strategic vision and focus on shareholder value. We're encouraged by the positive direction of our discussions so far, and by Western Digital's openness to considering a full separation of its Flash business. We are pleased that Western Digital's Board is conducting this review, and Elliott is prepared to provide strategic resources and additional capital to help the company realize the full value of both of its businesses."

In conjunction with the strategic review process, Western Digital and Elliott have signed a customary non-disclosure agreement and a letter agreement; such letter agreement will be filed on a Form 8-K with the Securities and Exchange Commission.

Qatalyst Partners and Lazard are serving as Western Digital's financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP is serving as Western Digital's legal counsel.

View at TechPowerUp Main Site

 

[AusWolf]

The what did what now?

 

[Wirko]

The what hired a law firm with a monstruous name to scare away small shareholders and keep them from doing the what.

 

[PCL]

Any time I see "create value for shareholders" I read "stifle long-term prospects so someone can cash out with a short-term gain".

 

[AusWolf]

Any time I see "create value for shareholders" I read "stifle long-term prospects so someone can cash out with a short-term gain".

When I see "create value for shareholders" I read "find new ways to exploit our workforce even more".

 

[Solidstate89]

Private equity firms are parasites.

 

[trsttte]

The what hired a law firm with a monstruous name to scare away small shareholders and keep them from doing the what.

In this case it might be more to do with the giant Elliott group, either they are exerting their usual style of influence or WD is trying to fight them off.

 

[fibre]

"We're encouraged by the positive direction of our discussions so far, and by Western Digital's openness to considering a full separation of its Flash business."

It seems somebody wants their flash business

 

[SOAREVERSOR]

The what hired a law firm with a monstruous name to scare away small shareholders and keep them from doing the what.

The hired a white shoe law firm to scare off a private equity group. Private equity exists to fuck over the workers and suck the money out of their salary and retirement funds before layoffs. Then they make the company sell off assets. Once they have sucked out all the money there is they leave fat and rich and the company goes under and everyone is screwed. From the looks of it the Elliot group was forcing WD to do things that make Elliot money now but don't work for WD long term. So they went out and got a white shoe law firm to keep the sharks at bay.