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Technology Stocks : Seagate Technology

STX 265.55

+3.8%

Nov 3 4:00 PM EST

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To: FJB who wrote (7762)	4/20/2011 6:21:37 PM
From: Dwayne Hines	Read Replies (2) of 7841

This comment was up at the WDC yahoo board: "WDC overpaid for HGST 19-Apr-11 06:51 pm In light of the Seagate purchase of Samsung's HDD business it is now clear that WDC grossly overpaid for its HGST acquisition. Samsung's HDD business was about 55% of the HGST business, yet it came to only 32% of the valuation ($4.3 billion vs $1.37 billion). HGST also did not have any NAND supply to offer nor any cross-licensing opportunities. The de-facto duopoly battle for market share may become too fierce and margins could decline for both players. Unlike STX, WDC has not been a player in the SSD market; it could be an advantage for STX as they can not only offer hybrid drives, but also become a one-stop shop for both HDD and SSD storage for its enterprise clients."

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