Western Digital, which has transferred the NAND memory unit that it used to work with KIOXIA in the past years, to its partner, plans to turn some of its parts into subsidiaries in the new period. This will increase the value in the hands of the shareholders.
Western Digital splits
It was announced that strategic alternatives were discussed at the board meeting held for the Western Digtal brand. The Flash and HDD divisions are planned to become separate subsidiaries to make WD shares more valuable.
While the Western Digital brand showed a successful performance during the pandemic period, increasing its shares to the level of $ 70, this year it was shaken by the economic crisis. Restructuring was inevitable as the shares fell to the lowest level in the last 2 years. The Flash and HDD divisions are the two best performing divisions of the company.
Western Digital, partnering with the Elliott investment platform, will handle the separation process together. Elliott also plans to contribute capital to the Flash subsidiary. Since the details have not been disclosed yet, it is not known whether two different companies will emerge, as we saw in the separation of HPE and HP, or whether subsidiaries will be created with two separate names.
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