Home / News / Gadget News / Western Digital agrees to buy SanDisk for $19 billion

Western Digital agrees to buy SanDisk for $19 billion


Western Digital

In a surprise move, Western Digital has agreed to buy out one of its biggest competitors.

The data storage hardware company has purchased SanDisk in a huge $19 billion deal.

Western Digital is paying the sum in a mixture of cash and stock, giving it access to SanDisk’s entire flash business.

“This transformational acquisition aligns with our long-term strategy to be an innovative leader in the storage industry by providing compelling, high-quality products with leading technology,” says Steve Mulligan, Western Digital’s CEO.

He adds: “I’m excited to welcome the SanDisk team.”

Western Digital is a US company founded back in 1970, since growing to become one of the world’s largest vendors of hard disk drives.

SanDisk, also based in the US, is slightly newer, having been founded in 1988. Its fortunes, however, come courtesy of flash memory storage solutions.

By purchasing SanDisk, Western Digital can now have a much more significant hold on the storage market thanks to SanDisk’s flash business.

It also gives Western Digital access to a combined portfolio of over 15,000 patents.

Related: Best Cloud Storage Service 2015

The transaction has now been approved by the boards of directors of both companies, and the deal is expected to close in the third calendar quarter of 2016.

Milligan will continue to work as CEO of Western Digital, while SanDisk CEO Sanjay Mehrotra will join the company’s board of directors.

Do you think this acquisition is good or bad for consumers? Let us know in the comments.

Check out our smartphone buyer’s video guide below:

Dead Words

October 22, 2015, 1:12 am

I think it's good as long as SanDisk maintains a firm hold on their side of the company. They know flash storage, like Western Digital doesn't. I like SanDisk and I enjoy using their products (especially their microSD cards) so if this brings some new innovations in-line and also helps Western Digital then I don't see an issue. It also means, however, that there is less competition in the storage field, which may not be a good thing.

Kulti Vator

October 22, 2015, 9:00 am

There's not much overlap between the two businesses, so they're a good fit for each other - and I suspect W.D. see Samsung with their excellent line of SSDs as their biggest threat in the mainstream PC/Notebook market going forwards, much more so than their traditional rival Seagate.

Also - with Intel, Toshiba Samsung, etc all working on some clever new 3D/stacked FLASH memory cells - Sandisk may be glad of sharing the R&D burden with their new parent to remain competitive through the next few generations of SSD technology.

Big thumbs up from me.

Dead Words

October 22, 2015, 11:26 am

Samsung has been making some huge strides in the SSD business. I believe Toshiba has made some quiet moves in the business though, improving their own storage. I believe a Toshibe PCIe. is in the new Surfaces, which is a huge deal.
We'll have to see. Storage is one area that's always improving.

comments powered by Disqus