Western Digital $20 billion all-stock offer for Kioxia poses valuation, cash challenge - analysts
By Chavi Mehta
(Reuters) - A possible merger between storage hardware maker Western Digital Corp with its Japanese partner and chipmaker Kioxia Holdings could create a NAND memory chipmaking giant that rivals Samsung Electronics.
But analysts are questioning whether Kioxia's investors will accept the price and terms of the reported $20 billion all-stock offer from Western Digital, which would provide no cash to the Japanese firm and put a lower value on it than other comparable deals in the industry. Western Digital on Friday filed documents to issue more shares but did not disclose the size of the offering.
Kioxia is one the largest players in NAND memory chips that provide the storage space in phones and hard drives, competing with South Korea's Samsung and SK Hynix. Hynix last year agreed to buy U.S. chipmaker Intel Corp's NAND business for $9 billion.
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(Reuters) - A possible merger between storage hardware maker Western Digital Corp with its Japanese partner and chipmaker Kioxia Holdings could create a NAND memory chipmaking giant that rivals Samsung Electronics.
But analysts are questioning whether Kioxia's investors will accept the price and terms of the reported $20 billion all-stock offer from Western Digital, which would provide no cash to the Japanese firm and put a lower value on it than other comparable deals in the industry. Western Digital on Friday filed documents to issue more shares but did not disclose the size of the offering.
Kioxia is one the largest players in NAND memory chips that provide the storage space in phones and hard drives, competing with South Korea's Samsung and SK Hynix. Hynix last year agreed to buy U.S. chipmaker Intel Corp's NAND business for $9 billion.
...
Read More on Datafloq
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