Hitachi Ltd., one of the prominent global faces in the world of electronics, recently gave a boost to its revenue standing in Tokyo trade after its nod to selling its hard-disk drive unit to Western Digital, a pioneer in the storage industry.
What Western Digital would gain, you ask? Well! This pioneer has been steadily losing its hard disk market owing to big players like Apple Inc. not using their disk drives. Post the agreement, the stocks of the company saw a 16 per cent surge, a notch higher than its steady competitor, Seagate Technology Plc. (STX) that managed a 9 per cent rise on NASDAQ Stock Exchange.
Hitachi wasn’t the first choice for this buyout. Apparently, a year back, Western Digital had attempted to buy Seagate, yes, its competitor! But, the deal didn’t come through.
Observers of the whole deal believe that both the companies have entered into this deal at the right moment. We’d like to believe so, too.