Tuesday, April 19, 2011

Samsung Partners With Seagate on $1.375 Billion Deal for HDD Operations and More

TechCrunch submits:

By Robin Wauters

Samsung (SSNLF.PK) and Seagate (STX) this morning announced a broad "strategic alignment" in a move to expand their existing relationship and more effectively counter competitor Western Digital (WDC).

The most important elements of the agreement include Samsung combining its hard disk drive operations into Seagate, receiving significant equity ownership in the HDD and storage solutions provider and enhancing the current patent cross-license agreement between the two companies.

In addition, Samsung and Seagate inked a NAND flash memory supply agreement under which Samsung will provide Seagate with its semiconductor products for use in Seagate?s enterprise solid state drives and other products, as well as a disk drive supply agreement under which Seagate will supply drives to Samsung for PCs, notebooks and other consumer electronics.

The combined value of these transactions and agreements is approximately $1.375 billion USD, which will be paid by Seagate to Samsung in the form


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