Western Digital buys Hitachi GST

Well this came out of nowhere. Western Digital has agreed to buy Hitachi Global Storage Technologies for $4.3 billion in cash and stock. Western Digital will give Hitachi $3.5 billion cash and 25 million shares, making Hitachi a 10% owner of the company. Two Hitachi reps will also be joining the WD board of directors.

Western Digital is saying that the purchase of Hitachi GST will create new value for everyone and will help their R&D efforts. There are now only four major hard drive manufactures left in the market including Seagate, Samsung, Toshiba, and Western Digital.

Source: Toms Hardware