• This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn more.

Seagate to buy storage rival Maxtor

muzikool

Act your wage.
Political User
#1
Big development:

Seagate Technology, the digital storage giant, reached a deal Tuesday to acquire a rival, Maxtor, for $1.9 billion in stock, according to executives involved in the transaction.

The deal, which was approved by the boards of both companies, is expected to be announced as early as Wednesday, the executives said.

Under the terms of the deal, Maxtor shareholders will receive 0.37 share of Seagate stock, the equivalent of $7.25 a share. That is a 60 percent premium over the price of Maxtor's shares, which closed Tuesday at $4.52.

When the deal is completed Seagate investors will own about 84 percent of the combined company and Maxtor shareholders about 16 percent.

For Seagate, the deal is not about filling a gap in its product line but rather is a gamble that it can utilize its manufacturing infrastructure to make Maxtor's disk drives at a lower cost. The executive said Seagate expected to create about $300 million a year in savings.

The transaction also fortifies Seagate's dominant position, but may raise questions among investors. Seagate, which was founded in 1979 and which was the first maker of hard disks for personal computers, has become an industry leader by pushing quickly for smaller drives and into new storage technologies.
Complete Story
 
#3
seagate is all i use at home and in the servers. very few issues with the. but this takeover that they are doing is quite intresting. i read earlyer that they are going to be buying 87% of there total stock.
 

Steevo

Spammer representing.
Political User
#5
I too an a Maxtor only fan now. Used to be Quantum. Seagate drives are OK, but Maxtors are heavier built and more durable in IMHO.

I have some Quantum drives sitting around from the <1Gb days that still work great with no bad sectors.
 

vern

Dominus
Political User
#7
I've always used Maxtors. The losers in the end are us with two of the biggest drive companies merging into one.
 

Son Goku

No lover of dogma
#9
hehe, on another forum where this was mentioned; some claimed to have had problems with Maxtor; and viewed them somewhat in the same way that some view Maxtor :ponder:

Well, in any case, here's my experience. The Seagate drives I own haven't really been problematic; albeit they are the higher end Cheetah drives. The 9.1 GB Cheetah drive I had gotten in 1998 and it is still in use in my computer now (mostly 24/7 operation the whole time). It doesn't show any signs that it will die anytime soon.

Course, one thing, it was an engineering sample from the second batch, which was in limited production (hadn't officially gone to market then). It was the first gen Ultra2 Wide (aka LVD) Cheetah that Seagate made. As they said when I got that comp; "it's an engineering sample. This could be good or bad. Bad if there are bugs they hadn't worked out, potentially good as they wouldn't have had time to work out how to make the drive more cheaply, as it's still a sample..."

My other Cheetah I got in December 2000 (that wasn't an engineering sample, but was in production) and that drive is also holding up without any signs it would fail soon.

A 100 GB external (USB 2.0) drive I had bought to complete some labs last semester against the back drop of problems I never mentioned here, is a Maxtor. I've only had it for a few weeks now. Thus far, I haven't had problems, but then again having not even owned the piece of hardware for a month yet; I couldn't give fair indication on how it will hold up over time...
 

chastity

Moderator
Staff member
Political User
#11
Maxtor vs Seagate is much like the old Intel vs AMD everybody has different experiences with them and tend to go with the ones that don't give them problems.

So far I've used Maxtor WD and Seagate and had very little trouble with the WD's and the one Seagate is seems good so far still fairly new but no problems.

Maxtor, I just had one die, and its only little over 3 years old as when I checked the warranty info on it, the warranty had expired a month or less before it died which makes my wonder what happened in that caused it

I do agree we as customers loose in any merger
 

Members online

No members online now.

Latest posts

Latest profile posts

Hello, is there anybody in there? Just nod if you can hear me ...
Xie
What a long strange trip it's been. =)

Forum statistics

Threads
61,961
Messages
673,239
Members
89,014
Latest member
sanoravies