WDC, NAND, NVM, enterprise storage systems, etc. Message Board

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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.

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Dec 2 3:59 PM EST

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From: SiliconAlley	9/28/2017 7:20:54 PM
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In reviewing all of today's reports, there is no real deal here. Essentially what the Bain consortium has done is purchase a lottery ticket, or a put option on the Western Digital legal strategy. The "deal" does not provide certainty as to assets conveyed or price paid. These terms are adjusted according to what Western Digital accomplishes in the legal arena. The price for this option is legal fees and management time. If Western Digital succeeds, the option becomes worthless. If Western Digital fails, the option becomes extremely valuable. A key issue here is the difference between Toshiba's JV interests and the newly created Toshiba Memory affiliate - and what level of injunction Western Digital obtains. JV interests have already been transferred into the affiliate in an attempt to circumvent consent rights, which is why Western Digital can block the transfer of Toshiba Memory. This event brings the purchase price, and the value of the option, down to 0. The bottom line is that Bain et al are merely rolling the dice, hoping for snake eyes, while Toshiba provides the venom.

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