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Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: stock bull who wrote (5344)	7/31/1998 3:04:00 PM
From: still learning	Respond to of 7841

Re s/w only: If taht were the case, then Luczo would have taken the job at s/w and they'd have kept Shugart t ohead up the DD biz. It would be a natural partitioning.

To: stock bull who wrote (5344)	7/31/1998 3:13:00 PM
From: Kevin Linder	Read Replies (1) \| Respond to of 7841

Stock bull: I know your post was addressed to Stitch, but I was wondering about a possible expansion of the Seagate Software operations. I don't think that they would exit the Disk Drive industry software sales are after all only $80 million or so a quarter. SEG is sitting on $1.8 billion in cash though. Luzco, came in to start and head the Software operations if my memory serves me right. This could explain the difference of opinion between Luzco and Shugart. I think Shugart would probably have been counseling a hunkering down and muddling through approach of the disk drive pricing war. Luzco might have pushed for picking up a private/public sofware company to enrich the Software division. I could think of any number of companies with $50-100 million of annual revenue. They would not even have to be in the data storage industry. This could have been one of the factors in the boards decision regarding Shugart. also possible could be some of the rumours that started in February regarding a buyout of WDC. Maybe Shugart wanted to do it or the board didn't or vice versa. I think we may know more by the third quarters conference call. Kevin Linder

To: stock bull who wrote (5344)	7/31/1998 8:19:00 PM
From: Stitch	Read Replies (2) \| Respond to of 7841

Stockbull; <<do you think its possible that under the new leadership at Seagate that they may want to exit the dd and tape business and become a pure s/w company?>> My first reaction to your question was a knee jerk motion with a verbal accompaniment of "NO WAY". But then, if the potential sale of the DD biz is on the table that is essentially what you outline. After a more thoughtful time considering your question my answer is I doubt it. To be honest with you my mind was drifting more towards a reverse of your scenario, with other acquisitions perhaps being the point in question. Don't forget this is a cash rich company, with an acquisition minded new CEO. Best, Stitch