Stock Groups

Western Digital Reaches Agreement with Activist Investor Elliott, Considers Splitting -Breaking


© Reuters. Western Digital Reaches Agreement With Activist Investment Elliott.

By Senad Karaahmetovic

Western Digital (NASDAQ:) A deal has been reached with Elliot Management. Elliot Management is an activist investor who urged the memory storage manufacturer to think about splitting its flash memory (HDD), and hard drive (HDD).

Western Digital stated that it was exploring different strategic strategies, including the division of the business into businesses that are focused on Flash memory storage devices (per the Wall Street Journal).

Elliot Management, which owns a 6.6% stake in the memory storage company worth $19billion, sent an email to the company last month urging that it consider restructuring its business.

Western Digital said it would look into Elliot’s suggestions, with the CEO David Goeckeler saying that the company and Elliot had been holding talks over potential strategic alternatives to boost WD’s valuation.

Elliott was supportive of the company’s decision to establish separate units for each business in 20202.

The report also states that Japan’s computer memory maker Kioxia Holdings remains open to discussions about a possible deal with Western Digital.

When they first discussed the possibility of a stock deal, which could have led to a massive memory-chip company, both memory storage manufacturers began to negotiate in 2021. However, the negotiations failed to advance further, in part due to a sharp decline in WD’s shares.

Elliot Management stated that it will consider investing $1 billion in equity in Western Digital if the company decides to spin off or merge its flash unit with another company in the sector.