Seagate is not Going Private? SandForce Remains Safe
10/28/2010 by: Theo Valich
Earlier last week, we published a story that something big was cooking in the storage market, which was supposed to culuminate with an announcement of Seagate Technologies going private, i.e. removing themselves from the NASDAQ.
However, according to our sources close to the company, the negotiations between investors such as TPG Capital and the senior management at Seagate Technology broke down and the supposed privatization of Seagate went down the drain.
This might be a very healthy move indeed, since the part of the package was the acquisition of SandForce, rising star player in the field of Solid State Drive controllers, which OCZ, Corsair and many other players rely on.
For those not in the know, there is already a mystical 20% ownership relation between SandForce, Seagate and the investment group. By going private, Seagate would gain access to 60% of SandForce this past Wednesday and take control of the company which recently completed another round of financing.
The reasons why privatization of Seagate didn't go through were quite interesting, but we cannot share them with you at press time. Seagate is now firing on all cylinders in preparation for next year, which will see Seagate coming with SSD and Hybrid drive products on all key markets.
With prices of NAND Flash continuously tumbling down, 2011 is supposed to bring us 1GB for 0.50-1.0 US dollar. With such prices, you can expect a breakthrough in Hybrid Drives and SSDs. One of big goals for 2011 for all major storage manufacturers is the enterprise market, in which companies like OCZ are starting to gain some serious ground.
We'll be following this situation closely. Stay tuned.
Seagate, STX, Seagate Technology, SandForce, SSD, SSS, Solid State Drive, Solid State Storage, TPG Capital, New York Stock Exchange, NYSE, NASDAQ, OCZ, Corsair
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