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Usually stock investors don't like diversification within companies. It is harder to value. I think that they realized that there is not so much in common betw
by greatgib 3y ago
Usually stock investors don't like diversification within companies. It is harder to value.
I think that they realized that there is not so much in common between the HDD and flash business. No added value to own the 2 business compared to separated entities.
With that, the WD legacy HDD business can continue as a dividend stock dying slowly.
And the flash business can now pretend to crazy valuations based on a shinny future.
- adventured 3y agoIt might also free up the flash business to make aggressive acquisitions without worrying quite as much about anti-trust from having a larger position in the overall storage market due to the old HDD business (which is dominated by just three firms). The stand-alone HDD business will end up as an acquisition in the not-distant future (Toshiba, Seagate, etc. somebody will eat it).