View Full Version : Seagate to buy Maxtor for $1.9B in stock
12 December 2005, 06:50 PM
"Seagate Technology (NYSE:STX (http://us.rd.yahoo.com/dailynews/finance/nm/bs_nm/storytext/maxtor_seagate_dc/17474605/*http://finance.yahoo.com/q?s=stx&d=t) - news (http://us.rd.yahoo.com/dailynews/biz/nm/bs_nm/storytext/maxtor_seagate_dc/17474605/*http://biz.yahoo.com/n/s/stx.html)) on Wednesday said it would buy rival Maxtor Corp. (NYSE:MXO (http://us.rd.yahoo.com/dailynews/finance/nm/bs_nm/storytext/maxtor_seagate_dc/17474605/*http://finance.yahoo.com/q?s=mxo&d=t) - news (http://us.rd.yahoo.com/dailynews/biz/nm/bs_nm/storytext/maxtor_seagate_dc/17474605/*http://biz.yahoo.com/n/m/mxo.html)) for $1.9 billion, in a deal aimed at cutting costs through a tighter production process in the notoriously competitive disk-drive market. "
12 December 2005, 07:01 PM
ok thats it
i think i will wake up one day and find that the nighbours bought my family.
12 December 2005, 08:23 PM
Seagate states that they are buying Maxtor's customer base and revenue stream not any technology. Looks like very bad news for Maxtor employees.
12 December 2005, 11:23 PM
i've owned several seagate drives in my time and all of them have ended in disaster. i've owned 4 maxtor drives for 4 years and all of them are running as well right now as they did the day i bought them. aquisitions like this are always bad news for the consumer. less choice, less competition, higher prices, more complacancy.
12 December 2005, 11:30 PM
If you can't beat them, buy them.
12 December 2005, 12:08 AM
One more competitor gone.
From what I've seen, Maxtor drives were usually a bit cheaper than Seagate's. I guess that'll change now.
Hitachi previously bought out IBM's hard drive operations. I assume that Hitachi and Seagate will now be the main players in this market.
12 December 2005, 01:55 AM
I am surprised at the price. 1.9 Billion??? Lenovo bought all of IBM's PC Bisuness and the logo for 5 years, and they paid 1.4 Billion. How in god's name does a hard disk manufacturer make so much money when the whole PC loses money for IBM? Odd really, but I honestly think Seagate overpaid by a good Billion or more. I don't recall what Hitachi paid for IBM's hard disk business, but by the way, IBM was selling that business to get out of the market. It appears from something I read that Maxtor too was thinking of getting out of the market... but they don't have any other market, do they?
Anywho, I only use IBM/Hitachi and Fujitsu (fast, quiet and relatively inexpensive when I picked them up), as I find Maxtor's drives far too loud, and Seagate's a bit too hard to find at a reasonable price.
EDIT: Turns out Hitachi paid 2.05 Billion for the IBM drive company which still partially belongs to IBM. So in that light, the Maxtor price doesn't seem absurd, but now it looks like Hitachi overpaid :/ . I don't have a spare Billion anyway, so why do I care!
12 December 2005, 01:55 AM
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