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Technology Stocks : Seagate Technology

STX 265.55

+3.8%

Nov 3 4:00 PM EST

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To: Dwayne Hines who wrote (7748)	3/17/2011 11:39:12 PM
From: Sam	of 7841

Seagate already rejected a bid from Samsung, IMHO. Samsung likes to buy cheap. Luczo likes to sell dear. Even though they are partners in SSDs, I don't think that there will be a meeting of minds on this. Of course, you should emphasize the word "think" in the above sentence. Anything can happen. Depends on how much Samsung wants to be Numero Uno in HDs. WDC/HIT just set the bar higher. But Samsung's NAND supply is their trump card over that combination, one that won't be easily bested since cost is extremely important in the HD sector. And WDC can't afford to buy Sandisk for its own supply, nor will Micron sell. They might be able to afford to buy the controlling stake in Hynix that is for sale, but I doubt if they want to be in the DRAM business and in any case Hynix is a Tier 2 supplier that isn't technologically equal to the Samsung or Toshiba. Perhaps if Intel wants to get out of the business, WDC could be a buyer. Or they could possibly take Intel's place as a Micron partner in the Singapore fab. Hitachi and Intel are already partners. A very thick web of connections in this incestuous sector. Just musing about possibilities here--completely speculative.

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