Western Digital and Kioxia Merger Plans Signal Potential Flash Market Challenge to Samsung, Analyst Says
Portfolio Pulse from Anusuya Lahiri
Western Digital Corp (NASDAQ:WDC) is reportedly planning to merge with Kioxia in a tax-free spinoff of its flash business. The combined company, which would be headquartered in Japan and trade on the NASDAQ, could challenge Samsung for NAND share leadership. The merger could result in a combined loss of $2.67 billion over the current and prior quarters. However, there could be significant synergistic savings and a return to profitability depending on the degree of these savings. WDC shares traded lower by 1.40% at $39.11 on the last check Monday.
July 17, 2023 | 5:56 pm
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NEUTRAL IMPACT
Western Digital's planned merger with Kioxia could lead to significant synergistic savings and a potential challenge to Samsung's NAND share leadership. However, the merger could also result in a combined loss of $2.67 billion over the current and prior quarters.
The merger between Western Digital and Kioxia could potentially challenge Samsung's leadership in the NAND market. However, the combined company is expected to report a loss of $2.67 billion over the current and prior quarters. Despite this, there could be significant synergistic savings, which could lead to a return to profitability. This could have a neutral impact on Western Digital's stock in the short term as the potential benefits could be offset by the expected losses.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100