Seagate officially announced the acquisition of Samsung's hard drive oligarch era

Although it is not optimistic for the industry, Seagate, which was surpassed by Western Digital, has resolutely embraced Samsung Electronics’ hard drive business. According to the latest quarterly financial report released at the same time, Seagate’s current financial status is still not very good, highlighting that Seagate’s recurrence is definitely a downfall.

Coupled with the Western Digital acquisition of Hitachi, since then the consumer hard drive market has left three: Western Digital, Seagate, Toshiba. The real oligarch era began.

According to the final agreement reached by Seagate and Samsung Electronics:

-Samsung's hard drive business will be integrated into Seagate -Extend and broaden existing patent cross-licensing agreement between both parties -Samsung supplies NAND flash memory chips to Seagate for enterprise and solid-state hard drives, hybrid hard drives and other products -Seagate supplies hard drives to Samsung , for desktop PCs, notebooks, and consumer electronics - In-depth development of enterprise-class storage solutions - Samsung acquires a large stake in Seagate - An executive from Samsung will enter Seagate's board of directors. The transaction valued at approximately $1.375 billion will be valued by Seagate. 50% stock, 50% cash paid to Samsung.

Samsung will eventually acquire 45,200,000 shares of Seagate’s common stock, representing approximately 9.6% of Seagate’s total stock. According to the weighted average of Seagate's stock price in the 30 days prior to the signing of the agreement, these stocks were valued at approximately $687.5 million, accounting for half of the total transaction volume.

The entire transaction is expected to be completed after the end of 2011 through the review of US and international regulatory agencies.

According to the earnings report released by Seagate, as of April 1, 2011, Seagate shipped 49 million HDDs in the third quarter of fiscal year 2011, with a total revenue of US$2.695 billion, a year-on-year decrease of 11.6%, a gross margin of 19.1%, and a net profit of US$93 million. , a year-on-year decrease of 82.0%, diluted earnings per share of 0.21 US dollars, a year-on-year decrease of 80%, cash and cash equivalents totaled 2.201 billion US dollars, a year-on-year decrease of 2.7%.

In the first nine months of fiscal 2011, Seagate’s total revenue was US$8.1 billion, its gross profit margin was 19.7%, and its net profit was US$392 million, a significant decrease of 68.1% year-on-year and a diluted earnings per share of US$0.83.