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

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Nov 26 3:59 PM EST

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From: bigchad	12/13/2017 9:05:31 PM
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bloomberg.com Toshiba Defeats Western Digital (Wink) By Tim Culpan Let's just call this settlement between Toshiba Memory Corp. and Western Digital Corp. exactly what it is: a victory for WDC. Yeah, sure, Toshiba Corp. gets to end a drawn-out legal battle that threatened the sale of its memory chip business. But the sale wasn't under threat. Not really. Bain Capital and its consortium partners went ahead with the purchase even under the shadow of that lawsuit, and WDC's claims were probably pretty flimsy anyway. What WD wants Advanced chips But Western Digital. Well, it got exactly what it wanted: guaranteed access to Toshiba's future factories and chip supply. Better yet, the California company doesn't actually have to pony up billions to buy Toshiba Memory, nor is it saddled with the burden of keeping TMC profitable during an inevitable downturn in the industry. (We know winter is coming. We just don't know when.) Had it owned TMC -- both the old and the new factories -- Western Digital would have had to wear the losses from any cyclical downturn in chip prices. By not owning TMC, Western Digital, as a major chip buyer, can benefit from those lower prices without fully taking on the opposite side of the trade. More in link above

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