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Samsung sell HDD division to Seagate For $1.375 Billion

Korean electronics giant Samsung has just announced plans to sell its HDD manufacturing arm to Seagate for a cool $1.375 billion, in a mixture of cash and stocks.

The deal also means that Samsung will now own 9.6 percent of Seagate, as well as being able to appoint one new member to join Seagate’s board of directors.

Seagate have also agreed to cross-licensing as well as supply stipulations, which should mean we start to see Samsung NAND flash in Seagate SSD’s and vice versa with Samsung hard drives.

So why are Samsung selling up? Well, I doubt very much that this is to do with the latest developments with a pending lawsuit from Apple; in fact it’s most probably because the company want to focus more on its SSD side of the business.

Let’s hope that this development will ultimately mean that SSD’s will come down to a more reasonable price, we’ll have to wait and see though.

What are your thoughts? We’re always interested in your comments, or if you want you can always tweet us as well @Gadget_Helpline.