Seagate May Buy Samsung HDD Unit

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.

  • burnley14
    Grrr, Seagate. We meet again, nemesis. Don't pollute Samsung with your evil ways of HDD failure.
  • LordConrad
    I'm glad that Seagate is doing well, I've never had any storage problems while using their drives.
  • dco
    No matter who Seagate buys up i'll never feel confident about buying their HDD's
  • BadKharmaCDN
    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.
  • cadder
    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.
  • Zenthar
    Exactly what consumer needs: a duopoly between Seagate and WD ...
  • jimsocks
    oh hell no.
    if anything, samsung should buy seagate.
  • A longer warranty doesn't equal better reliability. Seagate proves it.
  • Darkerson
    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.
  • pirateboy
    years agos seagate was the I stay away from their failing rubbish...I just go WD or even Hitachi