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.Like this article? Why not try out: