https://seekingalpha.com/article/4613009-is-the-western-digital-and-kioxia-merger-dead
15 replies (most recent on top)
the longer this goes unresolved, the probability of another layoff rises
The idea is WDC is going to pay upfront cash (god knows where, maybe from devaluing stock, or bonds, or more stupid loans) for a promise of x% factory time. I think the number was 40% if I remember right, but don't quote me.
WDC's balance sheet is already unhealthy. The Japanese don't really have much interest as indicated by prior negotiations. They have a premium, they know it, and they know there are plenty of other customers. It would be like a gold miner giving his gold away at a reduced price for someone else to sell at market value...
Two turkeys won't make an eagle. We will never match samsung or micron
don't understand why Kioxia can agree on the merge. WDC have to pay an annual subscription fee to Kioxia without the merge. Just like I am paying a monthly fee to T-Mobile , How T-mobile does agree to merge with me?
@nm True. #2 is the key. There is absolutely no way in he-l PRC will approve this merger in current climate. And yes, FU DG!
Intevac announced a $54M order for their Lean Systems on April 4, 2022. Then they announced on Jun 13, 2023 that order was cancelled. He then claims there was 'large' insider trading at WDC on June 15, 2023 of "Direct, Non Open Market" of about 60k shares at $41.08. This, the author argues, means the merger is off. He also goes on to say the investors in Intevac hired a law firm to investigate whether Intevac engaged in securities fraud. He also claims that $54M order would be 54 deposition systems.
I doubt the sale of stock had anything to do w/ anything. I guess he's assuming that Kioxia was going to take both SSD and HDD and therefore they needed the Intevac systems to sputter magnetic media for HDD but since the order was canceled, the deal is off.
Author admits he knows nothing.
@nml+1nfPRULo
#1 is cyclical and IMHO is more reason to consolidate and eliminate redundancies to cut costs.
While I still expect an announcement there are reasons it may not happen.
#1 NAND business is in severe oversupply and valuation is poor.
#2 Regulatory concerns
The article mentioned though is garbage.
article offers merger conjecture, but raises questions about cost model transitions as data center eclipsed first consumer and then client given the company’s current financial position
A supplier of goods to the HDD industry is dealing with a market decline and this throws the deal out? Poor reporting here.
The author extrapolated cancelation of HDD manufacturing equipment to NAND companies merger.
A subscription/paywalled Seeking Alpha article with a question mark headline is nothing but author opinion on whatever he knows.
Oh no. Now WD is royally f*&%^d
capital equipment cancellation by either company no surprise
https://seekingalpha.com/article/4613009-is-the-western-digital-and-kioxia-merger-dead