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Seagate May Buy Samsung HDD Unit

By - Source: WSJ | B 32 comments

Seagate has come under substantial pressure when Western Digital announced that it would buy Hitachi's HDD unit for $4.3 billion, making it the leading HDD maker worldwide.

Fortunately, Samsung's HDD unit appears to be for sale as well and, at least according to the Wall Street Journal, it appears that Seagate is an interested buyer.

Samsung isn't quite as large as Hitachi and it won't give Seagate the market lead at this time, but it’s a closer game and it would give Seagate more volume to compete. Samsung has about 18% of the HDD market, according to iSuppli.

The rumored purchase price of Samsung's HDD unit is about $1.5 billion, while Samsung would also consider deals for less than $1 billion, sources told the Journal. However, Seagate may think twice about such an acquisition since the $1.9 billion purchase of Maxtor back in 2005 did not go too well and the company needed several years to integrate the business and recover from the impact. We don't think this is a done deal yet.

While HDDs are still see as dominant mass storage products in applications where cheap storage is attractive (servers, PCs, notebooks) it makes sense that Samsung condenses its product portfolio and considers a sale of its money-losing HDD unit. The opportunity in Flash memory, where Samsung has the dominant lead, may be more attractive in the long run for the company, especially if tablets will be as successful as analysts predict.

Seagate and Samsung declined to comment on the WSJ report.

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  • 6 Hide
    burnley14 , April 19, 2011 1:30 AM
    Grrr, Seagate. We meet again, nemesis. Don't pollute Samsung with your evil ways of HDD failure.
  • -1 Hide
    LordConrad , April 19, 2011 1:39 AM
    I'm glad that Seagate is doing well, I've never had any storage problems while using their drives.
  • 3 Hide
    dco , April 19, 2011 1:57 AM
    No matter who Seagate buys up i'll never feel confident about buying their HDD's
  • 2 Hide
    BadKharmaCDN , April 19, 2011 2:02 AM
    Oh no !!!! I like and have had very good luck with Samsung HDD's. Not one failure yet, out of 30-35 drives. Seagate has a bad reputation with me. I've replaced too many of their drives (along with Maxtor) to ever consider spending my $'s on anything with Seagate's name on it. It would be a bad move in my opinion , a waste of a good reputation .... only WD would be left as a reliable source for reliable hard drives.
  • 2 Hide
    cadder , April 19, 2011 2:03 AM
    Spend a lot of time studying the reviews on newegg and you'll find that Seagate reliability is the worst.

    WD can buy Hitachi and improve Hitachi. Seagate can buy Samsung and pull them down to Seagate's level.
  • 2 Hide
    Zenthar , April 19, 2011 2:22 AM
    Exactly what consumer needs: a duopoly between Seagate and WD ...
  • 4 Hide
    jimsocks , April 19, 2011 2:53 AM
    oh hell no.
    if anything, samsung should buy seagate.
  • 1 Hide
    Anonymous , April 19, 2011 3:00 AM
    A longer warranty doesn't equal better reliability. Seagate proves it.
  • 1 Hide
    Darkerson , April 19, 2011 3:00 AM
    I hope this improves the quality of future Seagate drives, because I have had nothing but problems from the last several drives I have got from them. Worst two were the 7200.11 1.5TB and the LP 2TB drive I got from them. The 1.5TB barely made it a year before giving up the ghost, and the 2TB didnt even last a whole day before it keeled over. I RMA'd the LP drive and got me a Samsung Spinpoint F4 and was actually impressed by how well it performs, especially for a 5400rpm drive (Its faster then the 7200rpm Seagate drive)
    Anyway, long winded rant aside, I may be going back to WD if they end up messing this up.
  • 2 Hide
    pirateboy , April 19, 2011 3:07 AM
    years agos seagate was the best...now I stay away from their failing rubbish...I just go WD or even Hitachi
  • 0 Hide
    pirateboy , April 19, 2011 3:08 AM
    ^ hey tomshardware, give us an edit button
  • 1 Hide
    kewlx , April 19, 2011 3:20 AM
    pirateboy^ hey tomshardware, give us an edit button


    they already do...
  • 2 Hide
    memadmax , April 19, 2011 3:21 AM
    Years ago, Seagate was THE hd to buy, with samsungs and hitachi's being worthless paperweights. Now it seems WD is the best and the rest are useful for door stoppers and not much else....

    Maybe, just maybe, Seagate will get a quality boost out of this, but as the old saying goes: "Two wrongs don't make a right."
  • 1 Hide
    dimar , April 19, 2011 3:42 AM
    Don't sell it Samsung! Seagate will mess up the HDD models. Too many Seagate drives failed. I haven't been buying Seagate for several years now.
    No issues with Samsung drives so far.
  • 0 Hide
    alidan , April 19, 2011 4:48 AM
    memadmaxYears ago, Seagate was THE hd to buy, with samsungs and hitachi's being worthless paperweights. Now it seems WD is the best and the rest are useful for door stoppers and not much else....Maybe, just maybe, Seagate will get a quality boost out of this, but as the old saying goes: "Two wrongs don't make a right."

    but 3 lefts do
  • 0 Hide
    Marco925 , April 19, 2011 4:50 AM
    I've had drives from all manufacturers fail on me. there is a stated failure rate for a reason.
  • 0 Hide
    _Pez_ , April 19, 2011 5:27 AM
    If Seagate buys Samsung, I hope they do better products if it stills same product reliability I will keep on buying only WD. But I would like to try with something new of seagate and CHEAPER.
  • -2 Hide
    Blessedman , April 19, 2011 5:38 AM
    this is epic if it happens. This takes private fledgling Seagate back into a main stream fight with WD. Go Go Competition!
  • 1 Hide
    Anonymous , April 19, 2011 6:12 AM
    you couldnt give me a seagate drive. i have had 8 1TB drives fail from seagate. all were purchased at the same time, all have failed at least twice. one time i got an RMA back and it started clicking as soon as it was powered up the first time. All HD companies will have failures. but the rate at which seagate drives have been failing the last year or so i just plain criminal.
  • -2 Hide
    sonofliberty08 , April 19, 2011 6:42 AM
    hitachi is the 1 that i can trust , i hate to see it acquired by crappy WD , i don't hv anything on seagate and samsung , i use them as alternative of hitachi , i only wan to avoid the crappy WD , but i hope toshiba buy samsung more then seagate , so toshiba can start to produce desktop drives .
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