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A couple things: If WD were to start buying sandisk share-by-share, then the price would go up. By the time they owned 50+% their average share price would be
by cmsmith 11y ago
A couple things:
If WD were to start buying sandisk share-by-share, then the price would go up. By the time they owned 50+% their average share price would be a lot more than $86.
Owning 100% of sandisk is more than 100 times as valuable as owning 1%. With 100%, WD can tell sandisk what to do, has access to their IP, can merge steps in the production process, etc.
- bduerst 11y agoYou can still do that with majority ownership (e.g. 51% of shares). The difference with owning 100% is that you have to share dividends with the other 49%, which makes it difficult to move money out of a company.