In a move that could help counter the effect of Western Digital’s acquisition of Hitachi, Samsung is also merging its storage division with Seagate. It’s an unlikely partnership but should be interesting to see if it can mount a good defense against WD.
Seagate will now be running Samsung’s HDD operations and merging it with its own storage solutions. On the other hand, Samsung will have partial ownership of Seagate.
Samsung combining its hard disk drive (HDD) operations into Seagate
Extending and enhancing the existing patent cross-license agreement between the companies
A NAND flash memory supply agreement under which Samsung will provide Seagate with its market-leading semiconductor products for use in Seagate’s enterprise solid state drives (SSDs), solid state hybrid drives and other products
A disk drive supply agreement under which Seagate will supply disk drives to Samsung for PCs, notebooks and consumer electronics
Expanded cooperation between the companies to co-develop enterprise storage solutions
Samsung receiving significant equity ownership in Seagate
A shareholder agreement under which an executive of Samsung will be nominated to join Seagate’s Board of Directors
The combined value of these transactions and agreements is approximately $1.375 billion USD, which will be paid by Seagate to Samsung in the form of 50% stock and 50% cash.
Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.
what will be the implication of this merger in the ordinary consumer’s purchasing activity? Shall we expect cheaper harddisk drives for our computers or laptops from this manufacturer?
Wow! Looks like the big guys are now merging and buying their competitors’ stuffs! But let’s not forget, there are still new emerging competitors for them. I just can’t wait to see what will be Samsung+Seagate’s new HDD line… Will be looking forward to it!
With only 2 major manufacturers of HDs, wouldn’t that make competition smaller, less options for consumers. So we’ll just buy HDs that sell a little less than the other? I don’t like it. I’m a huge WD fan anyway so kebs. :D
Seagate will now be running Samsung’s HDD operations and merging it with its own storage solutions. On the other hand, Samsung will have partial ownership of Seagate.
Jonaflormicfren says:
Samsung is having a lot of better things these days, this move will again take them one step ahead. http://youshudno.blogspot.com/
gadgetboi says:
what will be the implication of this merger in the ordinary consumer’s purchasing activity? Shall we expect cheaper harddisk drives for our computers or laptops from this manufacturer?
Teknisyan says:
Now its gonna be a 3 way battle for the HD supremacy…
Seagate, Western Digital and Toshiba
http://www.teknisyan.net/2011/04/seagate-to-purchase-samsungs-hd-arm-for.html
EgyBoi says:
Aren’t they both manufacturer of hard disk drives?
Hm hope the merging won’t affect the competition esp for laptop hard drives.
Jojo says:
Samsung – producer of plasticky gadgets, will ruin
seagate reputation..
dan says:
it looks like seagate were deeply concerned by WD acquisition of hitachi storage earlier…
ninong says:
hope this will also mean we can avail of seagate’s extended local warranty (3 years?) for samsung hard drives
EdwinC says:
Wala ka bang bagong review tungkol sa mga gadgets? Kahit anong gadgets?
Willy Yu says:
buy your rival, nice one!
Messie says:
I wonder if these factors have anything to do with the sell/buy-out:
– Apple to use Samsung HDs in their future Macbook Airs
– Apple suing Samsung for patent infringement
hmmmmmmm……
paulkev09 says:
Let’s just hope that the ideas of these two companies will fuse, just like what happened between AMD and ATI.
Ryan says:
Samgate or Seasung HDD anyone? :D
Tristan says:
Wow! Looks like the big guys are now merging and buying their competitors’ stuffs! But let’s not forget, there are still new emerging competitors for them. I just can’t wait to see what will be Samsung+Seagate’s new HDD line… Will be looking forward to it!
Operation Super says:
With only 2 major manufacturers of HDs, wouldn’t that make competition smaller, less options for consumers. So we’ll just buy HDs that sell a little less than the other? I don’t like it. I’m a huge WD fan anyway so kebs. :D
Benchmark says:
“wouldn’t that make competition smaller, less options for consumers”…pros and cons having a smaller competition (referring to Smart acquiring Sun).
Anyway I hope this would be cheaper SSD in the near “future”…will that be tomorrow? Hehehehe
aron says:
this will surely affect storage business mainly because the hdd and ssd ups and downs are in focus to develop next gen storage.
aron says:
Seagate’s HDD tech plus Samsung’s NAND flash tech = Ultra Hybrid HDD and SSD.