Company Of The Day: Western Digital

+11.91%
Upside
68.74
Market
76.93
Trefis
WDC: Western Digital logo
WDC
Western Digital

What?

Western Digital (NASDAQ:WDC) is reportedly in advanced talks to merge with Kioxia, a Japan-based NAND flash-memory producer. The deal could be valued at around $20 billion, per a report from Reuters.

Why?

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NAND is a commodity business, and greater scale is valuable from the standpoint of pricing power and cost management. That said, it remains to be seen if a potential deal will be approved by regulators.

So What?

Investors appear to like the prospects of a merger. Western Digital stock was up almost 8% in Wednesday’s trading.

See Our Complete Analysis For Western Digital

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