Western Digital’s Acquisition of SanDisk Finally Approved
Alexander Neil / 4 years ago
In a deal that has been months in the making, Western Digital today announced that their shareholders had voted to approve the $19 billion purchase of SanDisk. It was revealed that over 90% of WD’s shareholders voted for the issuing of WD common stock connected to the purchase, while 98% of SanDisk’s shareholders voted to approve the merge. Despite some potential upsets along the way, the takeover of SanDisk is expected to be completed by the second quarter of this year.
Western Digital and SanDisk are both industry leading giants in their fields, with WD focusing on hard drives and disk management software while SanDisk is one of the largest providers of NAND flash memory-based products, including SD cards, SSDs, and USB drives. This purchase gives WD a solid entry into the NAND flash storage sector and should bring together the WD’s experience in the hard drive sector and SanDisk’s SSDs to create great results.
WD CEO Steve Milligan firmly believes that the merger is best for both companies, stating that “This combination brings together two tremendous companies and cultures ideally positioned to capture the growth opportunities in our rapidly evolving industry.” Meanwhile, SanDisk CEO Sanjay Mehrotra said the merger would allow them to “offer the broadest portfolio of industry-leading, innovative storage solutions to customers across a wide range of markets and applications.”
With SSDs rapidly gaining on HDDs in almost every way, it seems like Western Digital’s purchase of SanDisk will allow them to remain more relevant in a world that is shifting towards NAND flash storage instead of the traditional hard drive they are known for. What this merger will mean for the consumer remains to be seen, however, both companies possess a history of high quality and reliable products, so we can hope it is nothing but good.