Seagate to buy Maxtor for $1.9 Billion

[Chris Gohlke]

<div class='os_post_top_link'><a href='http://money.cnn.com/2005/12/21/technology/seagate_maxtor.reut/index.htm' target='_blank'>http://money.cnn.com/2005/12/21/technology/seagate_maxtor.reut/index.htm</a><br /><br /></div><i>"Seagate Technology said Wednesday it will buy rival computer disk-drive manufacturer Maxtor Corp. for $1.9 billion in stock, aiming to cut combined costs and drive development of new products. Analysts have said Maxtor has been losing market share to competitors like Seagate and Western Digital Corp. in consumer electronics, one of the fastest-growing businesses for computer storage companies."</i><br /><br /><img src="http://www.digitalmediathoughts.com/images/maxtor_seagate_logo.gif" /><br /><br />Number one Seagate is gobbling up number three Maxtor and taking a bigger lead over number 2 Western Digital. Hard drives have for the most part become commodity items, so this is a pretty logical course of action to allow Seagate to increase its efficiency and maintain a leadership position.

[Ed Hansberry]

"Seagate Technology said Wednesday it will buy rival computer disk-drive manufacturer Maxtor Corp. for $1.9 billion in stock, aiming to cut combined costs and drive development of new products."

$1.9 Billion... is that before or after the mail in rebate?

[Chris Gohlke]

:rofl:

[Darius Wey]

Seagate to buy Maxtor for $1.9B

I almost read that as $1.98. 8O

[Chris Gohlke]

That's the after rebate price.

I changed the title to make it clearer. :D

[sub_tex]

let's hope that this puts an end to the horrible maxtor drives that like to die at the worst moments ever. :wink:

[Bob Christensen]

let's hope that this puts an end to the horrible maxtor drives that like to die at the worst moments ever. :wink:

Usually mergers result in the lowest common denominator, not the highest. Maxtor probably had achieved very low production costs and that's why Seagate bought them (Yes, I'm a pessimist).