Samsung and Seagate Join Forces After HDD Buyout

Psywar - April 19, 2011 11:59AM in Manufacturers, Storage / Hard Drives

Samsung and Seagate have joined forces after Samsung sold the hard disk drive-manufacturing wing to Seagate. Seagate bought Samsung's HDD business for $1.375 billion in equal amounts of cash and stock. Samsung now holds 9.6 percent of Seagate's shares and will have the ability to vote on Seagate's Board of Directors. Due to all these events, Samsung and Seagate will start cross-licensing devices. Seagate will also begin furnishing Samsung's PCs and other electronics with hard disk storage devices. With this new alliance Seagate hopes to improve its relationship with TDK Corporation/SAE Magnetics and by doing this should allow for all companies to boost the time-to-market on new products. You should expect to see these changes in full effect by the end of this year.