Western Digital announces: Complete spin-off of flash memory and hard disk business before the end of this year

News from this site on March 6, Western Digital recently issued an announcement, announcing that it has made significant progress in spinning off its hard drive and flash memory businesses, and will complete the spin-off by the end of 2024 as scheduled. and announced the spin-off Later, the main person in charge of the business appeared.

Source: Western Digital

Reports in October 2023 pointed out that due to the failure to successfully complete the contract with Kai After the merger of Xia, Western Digital announced that it would spin off to form two independent listed companies, focusing on the hard disk and flash memory markets respectively.

Western Digital announced the spin-off of two businesses in order to more effectively promote innovative technology and product research and development, and to leverage their unique growth opportunities to expand market share. This will help further consolidate their respective leadership positions in the market and improve operational efficiency by optimizing capital structures.

According to the press release, Western Digital said they have made important progress, including establishing a global legal entity, transferring customer and supplier contracts, conducting the final stages of preparations for government filings, and instituting a settlement agreement with the hard drive and flash storage company. The spin-off has already made preliminary executive leadership appointments and more.

David Goeckeler, CEO of Western Digital, who will be responsible for the flash memory business, said:

Today’s announcement highlights an important step forward in completing this complex transaction. The deal spans more than a dozen countries and spans data storage technology brands from consumers to professional content creators to the world's leading device OEMs and largest cloud service providers. This further strengthens our position in the global market and demonstrates our determination to continuously expand our business scope and strength. The success of this transaction also highlights the professional capabilities and collaborative spirit of our team, laying a solid foundation for our future development. We will continue to be committed to providing excellent products and services to meet the growing needs of our customers and continue to innovate. I am very pleased with the outstanding performance of the team in the spin-off work, which will help Ensure the successful transition of our flash memory and hard drive businesses into independent market leaders.

After the separation, Western Digital's two businesses will each have strategic focus and resources to pursue exciting opportunities in the market. The flash memory business shows fascinating prospects, has market growth potential, and is committed to developing disruptive new memory technologies.

Irving Tan, currently Executive Vice President of Global Operations at Western Digital, will take over as CEO of the hard disk business and continue to operate on behalf of Western Digital.

Related reading:

"The merger with Kioxia failed, Western Digital announced that it will be split into two companies"

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