WDC, KOMG: A Merger For My Watch List

Western Digital Corporation (WDC), and Komag, Incorporated (KOMG) announced today that the two companies have entered into a definitive agreement for WD to acquire Komag for $32.25 in cash per share for a value of approximately $1 billion.

Komag is currently a member of the Mid Cap Watch List (Track at Marketocracy), but is due to be replaced at today’s market close. Meanwhile, Western Digital is scheduled to join the Large Cap Watch List (Track at Marketocracy). The deal’s timing is perfect in that the Watch List will participate in the announcement-related rise in KOMG shares while avoiding any losses Western Digital might suffer today as the acquiror.

From a longer-term perspective, it is unclear whether the merger will reduce the bloody disk drive supply chain environment.

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Topics: KOMG, Stock Market, WDC | RSS

4 Comments on “WDC, KOMG: A Merger For My Watch List”

  1. [...] WDC, KOMG: A Merger For My Watch List [...]

  2. [...] The Mid Cap Watch List (Track at Marketocracy) gained 1.51%, compared to a loss of 10 basis points for the S&P 400 (thanks, Western Digital!). [...]

  3. [...] semiconductors (see the chart of year/year price changes below) I said “I happen to believe the worst will soon be over for semiconductors.” The reason for my belief is that this year’s poor pricing environment stemmed from last [...]

  4. [...] The competitive environment for storage continues to be mitigated by consolidation. Brocade bought McData, Seagate bought Maxtor and EVault, and Quantum’s purchase of Advanced Digital Information Corp. has since been followed by the Western Digital/Komag merger. [...]

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