After more than 3years of merger rumors I'm so tired.
Who is culprit, kioxia, WD or both?
17 replies (most recent on top)
OP,don't worry, you won't see more rumors, not at least in next 6 months :)
It was a hopeful, overoptimistic gamble without assessing the risks from all angles . . . and therefore a poor result .
Anyone who thought it was going through clearly doesn't understand politics and stakeholders. Everyone should understand China is holding their fabs hostage in the decision process and won't vote favorable with current tensions. Or that SK Hynix owns considerable shares of Kyoxia and will not be left holding the back, not to mention WD has nothing left to sell or credit to raise enough money to buy them out.
Get ready for a slow painful decline.
In spite of all the bs from the experts in this website, there won't be a merge. Stock down 12%, I should have sold last week
@2oqh+1pfSvBd5 funding not fully secured (probably 75%-90% secured), according to news hynix opposed to the valuations they going to be paid and hence that is where the statement capital inadequate originates from. Hynix estimated to own up half of bain investment in kioxia.
@1zjp+1pfSvBd5 is right. Funding is already secured. No issue related to money. SK Hynix and China are opposing the deal. Check here: https://www.bloomberg.com/news/articles/2023-10-26/sk-hynix-says-it-won-t-agree-to-western-digital-kioxia-merger
So in other words two turkeys merging and none has money, so sad that money is stopping the deal for years
@1ssb+1pfSvBd5 you made claims, so here it is: Kioxia has reached out to Japan Industrial Partners to invest in merger with Western Digital
https://www.reuters.com/markets/deals/kioxia-has-reached-out-jic-invest-merger-with-western-digital-bloomberg-news-2023-10-20/
@1daw+1pfSvBd5 This is not the news that the other guy was talking about. The other person was saying after securing the amount in your shared article the merger needs additional amount which is a complete lie spilled out by that other mo--n. The amount 13 billion has been secured last Friday.
The wait is now for SK Hynix and China approval.
Kioxia Holdings Corp., a leading producer of memory chips, is reportedly in talks with Japan Investment Corp. (JIC) for a capital infusion to support its planned merger with Western Digital Corp. The aim is to strengthen the financial position of the combined company. Kioxia’s lenders are working to submit a commitment letter to facilitate the agreement, as they believe that the new company’s capital is inadequate and requires additional investment to bolster its balance sheet. JIC, a state-backed investment fund focused on enhancing Japan’s competitiveness in next-generation industries, is considering the request.
@1gyh+1pfSvBd5 couldn't find this news on google. At least share the link or its BS.
@1ssb+1pfSvBd5 is in the news go google yourself, the balance sheet too weak to operate, need more capital infusion from JIC or any other interested party.
@1ggd+1pfSvBd5 Don't spill out BS. Kioxia is not short of capital. Financial part is secured already. They are negotiating approval with SK Hynix and then China. Getting those approvals aren't that easy
From news Kioxia is still short of capital after the 13B loan, it is not inevitable, yet.
At this point merger is inevitable. Don't worry about it.
investors
The culprit is you for being too anxious about things you cannot control.