Seagate to buy Maxtor

Vikingod · Dec 21, 2005, 02:27 PM

Seagate and Maxtor today jointly announced they have entered into a definitive agreement under which Seagate will acquire Maxtor in an all stock transaction. Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Maxtor shareholders will receive .37 shares of Seagate common stock for each Maxtor share they own. When the transaction is completed Seagate shareholders will own approximately 84% and Maxtor shareholders will own approximately 16% of the combined company. The value of the transaction is approximately $1.9 billion.

The combination of Seagate and Maxtor will build on Seagate's foundation as the premier global hard disc drive company, leveraging the strength of Seagate's significant operating scale to drive product innovation, maximize operational efficiencies, and realize significant cost synergies. These capabilities will enable the combined company to compete more effectively as the highly competitive data storage industry addresses the challenges and opportunities for significant growth that lie ahead. The combined company will be well-positioned to accelerate delivery of a diverse set of compelling and cost-effective solutions to the growing customer base for data storage products.
__________
Press Release: Seagate

Drakon · Dec 21, 2005, 03:03 PM

Wow. Major move there

Vikingod · Dec 21, 2005, 03:28 PM

Very surprised at that, but its probably a great move to get on the tails of WD. Hopefully the quality of some of the Maxtor drives will increase with this.

niceguyrichy · Dec 21, 2005, 04:15 PM

cool. does this mean maxtor drives will stop being loud and crap?

Paradox Enigma · Dec 21, 2005, 05:45 PM

Sounds OK - as long as I can tell when I'm getting a Seagate product, and not a rebadged Maxtor product.... hope they make the distinction clear to us consumers.

riles9262 · Dec 21, 2005, 05:48 PM

I think it's a good move. I've never had a problem with maxtor drives, and I've heard really good things about seagate. Personally, I really like samsung's drives...my new sata-II is really fast, and really quiet.

No_Style · Dec 21, 2005, 06:46 PM

Quote:

Originally Posted by riles9262

I think it's a good move. I've never had a problem with maxtor drives, and I've heard really good things about seagate. Personally, I really like samsung's drives...my new sata-II is really fast, and really quiet.

I concur. I actually have all 3 major brands. Maxtor, Seagate and WD. I use Maxtor for my large storages. Seagate for my SFF and WD Raptors for my OS drives. I've had bad experience with WD's main line though.

I hope that prices remain low though

mkk · Dec 21, 2005, 09:30 PM

Reminds me of when Seagate acquired Conner back in '96. Then for a while there was a line of rebadged Conner drives that served the low budged sector. But then it was an extra annoyance since Conner manufacturing quality had really slipped at the time. Maxtor though struggling somewhat to keep up with the others, aren't that bad.

Resistor · Dec 22, 2005, 01:09 AM

This is definitely a good move from Seagate... Seagate had been a good with storage but not with speed... Hopefully this will boost the drive speed up and compete with WD

nitrousoxide52 · Dec 22, 2005, 01:14 AM

I think this is a great move on seagates part, we will probably see an increase in quality of HD's because the competition will be upped

Competition is always great for the consumer, as long as that competition lasts. Just like Nvidia vs. ATI, if it was just Nvidia, our tech wouldn't be anywhere near where it is now. And, prices would be alot different as well.

Dec 21, 2005, 02:27 PM	#1
Vikingod Int'l Fish Liaison Join Date: Jul 2004 Location: By the light of lamp I sit and type... Posts: 16,197 Rep Power: 112 System Specs	Seagate to buy Maxtor Seagate and Maxtor today jointly announced they have entered into a definitive agreement under which Seagate will acquire Maxtor in an all stock transaction. Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Maxtor shareholders will receive .37 shares of Seagate common stock for each Maxtor share they own. When the transaction is completed Seagate shareholders will own approximately 84% and Maxtor shareholders will own approximately 16% of the combined company. The value of the transaction is approximately $1.9 billion. The combination of Seagate and Maxtor will build on Seagate's foundation as the premier global hard disc drive company, leveraging the strength of Seagate's significant operating scale to drive product innovation, maximize operational efficiencies, and realize significant cost synergies. These capabilities will enable the combined company to compete more effectively as the highly competitive data storage industry addresses the challenges and opportunities for significant growth that lie ahead. The combined company will be well-positioned to accelerate delivery of a diverse set of compelling and cost-effective solutions to the growing customer base for data storage products. __________ Press Release: Seagate

Dec 21, 2005, 05:45 PM	#5
Paradox Enigma Lurker Join Date: Sep 2003 Location: Planet Earth (I think) Posts: 126 Rep Power: 0	Sounds OK - as long as I can tell when I'm getting a Seagate product, and not a rebadged Maxtor product.... hope they make the distinction clear to us consumers. __________________ ...thread killer...

Dec 21, 2005, 05:48 PM	#6
riles9262 Driverheaven brewmaster Join Date: Oct 2002 Location: British Columbia, Canada Posts: 4,842 Rep Power: 72 System Specs	I think it's a good move. I've never had a problem with maxtor drives, and I've heard really good things about seagate. Personally, I really like samsung's drives...my new sata-II is really fast, and really quiet. __________________ A beer a day keeps the doctor away.

Dec 22, 2005, 01:14 AM	#10
nitrousoxide52 Driverheaven.com err .net Join Date: Jan 2005 Posts: 1,719 Rep Power: 0	I think this is a great move on seagates part, we will probably see an increase in quality of HD's because the competition will be upped Competition is always great for the consumer, as long as that competition lasts. Just like Nvidia vs. ATI, if it was just Nvidia, our tech wouldn't be anywhere near where it is now. And, prices would be alot different as well. __________________ AMD Athlon64 X2 3800+ XFX Geforce 7800GT ABIT AN8-SLI BFG Tech 650w

Dec 21, 2005, 03:03 PM	#2
Drakon DriverHeaven Extreme Member Join Date: Jun 2004 Location: Floatin'... Posts: 4,957 Rep Power: 0	Wow. Major move there

Dec 21, 2005, 03:28 PM	Thread Starter #3
Vikingod Int'l Fish Liaison Join Date: Jul 2004 Location: By the light of lamp I sit and type... Posts: 16,197 Rep Power: 112 System Specs	Very surprised at that, but its probably a great move to get on the tails of WD. Hopefully the quality of some of the Maxtor drives will increase with this.

Dec 21, 2005, 09:30 PM	#8
mkk Cthulhu/Dagon 2012 Join Date: Oct 2003 Location: Gefle, Sweden Posts: 4,495 Rep Power: 132 System Specs	Reminds me of when Seagate acquired Conner back in '96. Then for a while there was a line of rebadged Conner drives that served the low budged sector. But then it was an extra annoyance since Conner manufacturing quality had really slipped at the time. Maxtor though struggling somewhat to keep up with the others, aren't that bad.

Dec 22, 2005, 01:09 AM	#9
Resistor Get it Going.. Join Date: May 2004 Location: Brisbane ..Oz Posts: 750 Rep Power: 0	This is definitely a good move from Seagate... Seagate had been a good with storage but not with speed... Hopefully this will boost the drive speed up and compete with WD