(from The Inquirer)
Hard drive manufacturers Seagate and Maxtor confirmed the acquisition. The deal is worth $1.9 billion. The firms said the combination will be 10-20% accretive on a cash EPS basis after the first full year of combined operations. The combined company will save around $300 million in operating expenses after the first full year of integration, Seagate said. The transaction will be completed in the second half of next year. If the deal falls apart, Maxtor will pick up $300 million.
Is this good news?
Maybe yes. Because the combined Seagate+Maxtor production line will save (as they claim) $300 million on their first year and this could translate to bigger budget for R&D, huge HDD capacities and lower retail prices.
Maybe not. You now have a HDD giant having almost complete monopoly of the industry. And we know what it means for prices and reliability when one is the only single player left.
Loading ...
This deal has been approved by the Feds? Man, the consumers are screwed this time.
Seagate + Maxtor? Grabeh. They’re like the HDD giants. That will be what Western Digital and LG are going to face.
I think the savings would be due to layoffs since there will be overlapping jobs between the companies.
whoa.. another shopping spree
autodesk bought alias
adobe bought macromedia
then, the hardware giants