At a cost of $1.4 Billion, Seagate completed its purchase of Samsung's hard disk drive division. Samsung has sold its hard drive assets including infrastructure and employees to Seagate. Back in 2005, Seagate bought Maxtor for $1.9 Billion dollars. While the Maxtor purchase wasn't wildly successful it did not stop Seagate from the Samsung HDD purchase. Seagate release a press announcement on the matter,
Together, Seagate and Samsung have aligned our current and future product development efforts and roadmaps in order to accelerate time-to-market efficiency for new products and position us to better address the increasing demands for storage,” said Steve Luczo, Seagate chairman, president and CEO. “It is an exciting time in the industry with rapidly evolving opportunities in many markets including mobile computing, cloud computing, and solid state storage.”
This deal was announced back in April, so it comes at no surprise; however, I have strong reservations with regards to such buyouts and mergers. Fewer independent and competing manufacturers has always hurt the consumer in the long run. This isn't confined to the hard drive industry either, but rather all industries. I digress.
Samsung will be supplying Seagate with their notebook line products for more immediate use. Also, Samsung will provide semiconductor products for its SSDs. This will give Seagate a more expansive reach with more customers in Southeast Asis, China, Germany, the Russian Federation and Brazil.
The strategic relationship will open new opportunities for the two companies by mutually complementing each other’s creative technology solutions for a broad diversity of IT applications,” said Oh-Hyun Kwon, vice chairman of Device Solutions of Samsung Electronics.
Seagate also has recently announced it was slashing warrenty coverage on its hard drive.
Read more on Seagate's acquisition: BusinessWire