Mark's Notebook


	Pride goeth before destruction, and an haughty spirit before a fall. - Proverbs 16:8

Seagate to Acquire Maxtor

San Jose Mercury News

Wednesday 21 December 2005, 12:06 pm
Keywords: Computer Topics , News Articles

By Therese Poletti, Mercury News

Seagate Technology, the world's largest disk drive maker, plans to announce today the purchase of its struggling rival, Maxtor of Milpitas, in a stock deal valued at about $1.9 billion, according to sources familiar with the transaction.

The deal would increase Seagate's manufacturing scale, which would help bring production costs down.

While the disk drive industry has been rebounding in the past year, due in part to the huge demand for more storage in consumer electronics devices, Maxtor has not benefited as much as Seagate or their other big rival, Western Digital of Irvine.

But after Apple Computer unveiled its iPod nano in September -- an ultra-thin digital music player that uses a flash memory card to store songs instead of a mini disk drive -- investors grew nervous again about disk drive stocks. Seagate was one of the suppliers of small disk drives for earlier iPods.

http://www.mercurynews.com:80/mld/mercurynews/news/13455647.htm