Seagate to buy storage rival Maxtor

muzikool

Act your wage.
Political Access
Joined
27 Dec 2001
Messages
7,626
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
 
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.
 
I have had nothing but problems from seagate drives, only use Maxtor in my systems. I hope Seagate don't mess things up.
 
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.
 
Seagate and Maxtor are great HD's .. This will be good , it should work out pretty good ..
 
I've always used Maxtors. The losers in the end are us with two of the biggest drive companies merging into one.
 
Yar, so much for price wars and competitive pricing.
 
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...
 
Have always used Maxtors here, have been looking at Seagate drives with the new 160GB platters. Seems all ok to me.
 
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 profile posts

Also Hi EP and people. I found this place again while looking through a oooollllllldddd backup. I have filled over 10TB and was looking at my collection of antiques. Any bids on the 500Mhz Win 95 fix?
Any of the SP crew still out there?
Xie wrote on Electronic Punk's profile.
Impressed you have kept this alive this long EP! So many sites have come and gone. :(

Just did some crude math and I apparently joined almost 18yrs ago, how is that possible???
hello peeps... is been some time since i last came here.
Electronic Punk wrote on Sazar's profile.
Rest in peace my friend, been trying to find you and finally did in the worst way imaginable.

Forum statistics

Threads
62,015
Messages
673,494
Members
5,621
Latest member
naeemsafi
Back