Seagate lets you guess the SSD manufacturer it wants to buy

Subject: General Tech, Storage | August 1, 2012 - 07:01 PM |
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CFO of Seagate, Pat O’Malley, is looking to purchase a solid state drive manufacturer but will not confirm rumors that OCZ is who they have in mind. They then acknowledge that there is only one company who would make sense for them to acquire.

It is kind-of like you are trying to be stealthy with your interest in a girl in your classes – but it is all throughout the gossip circles. Also, you say you like tall blonde women and there is only two in your program; the other is Intel, nothing more needs to be said.

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Ya CZ.

Reuters arranged a discussion with Pat O’Malley, the Chief financial officer (CFO) of Seagate. During the interview, O’Malley announced that Seagate would be interested in purchasing an SSD manufacturer with a strong presence in the enterprise market. O’Malley was further questioned about rumors of Seagate purchasing OCZ. The response was about as thinly veiled as a non-answer could be before it would be considered a confirmation.

“We look at all technology product providers but what I would say is that on the enterprise SSDs, there’s probably only one of them that really makes and significant money.”

And they certainly will make significant money now – as investors binge a little to own a few extra shares.

“We don’t do any comments on official policy on M&A ((Mergers and Acquisitions)) until it’s done.”

Directly.

Update: As commentors and coworkers have mentioned -- it would not be too far fetched for Seagate to be talking about companies such as FusionIO. Still -- OCZ feels most likely to me.

Source: Reuters
August 1, 2012 | 07:51 PM - Posted by Chaitanya Shukla (not verified)

Why would OCZ sell the company when they are doing great in SSD market unless somethings have gone horribly wrong. Also if seagate did manage to takeover the OCZ then it might mean we will get some good SSD as Seagate has good experience in storage industry.

August 1, 2012 | 08:15 PM - Posted by Arb1 (not verified)

um, good experience is a matter of opinion. Some people will say Seagate are the joke of the industry for hard drives. Some will say other. The experience I have had with them, are they were god awful slow 10min to crop a 2gb file where WD drive did it in 2 min.

August 1, 2012 | 08:48 PM - Posted by Edwin (not verified)

Seagate could be talking about Fusion IO or STEC too. They both have more market share in the enterprise SSD market than OCZ since they both only focus on the enterprise segment.

August 2, 2012 | 06:17 AM - Posted by cyow

Seagate be better to just make there owe SSD

August 2, 2012 | 06:17 AM - Posted by Adam (not verified)

It looks like they are going to be be bought by OCZ. its tough for hard drive makers to stay in busines. I would not be surprised if Western digital bought an SSD company as well in the near future.

August 2, 2012 | 09:53 AM - Posted by Bob Smith (not verified)

You sell a company because you can make more money from the sales, than from running the company. Is OCZ making any money? Their published accounts say 'not for a long time'.

August 2, 2012 | 11:22 AM - Posted by Anonymous (not verified)

How many SSD makers are there! Big fish gobble up the small fish and BIG fish start to increase prices! Big fish also claim big flood hurt production [ jack prices so high that Abdul Jabbar can not reach them with SKY HOOK ]. Big Fish say UH! OH! solar storm hurt flash production, So long to SSD price drop!

August 2, 2012 | 03:25 PM - Posted by renosablast (not verified)

Bob Smith: Seagate would acquire OCZ; not the other way around.

OCZ would be willing to sell as it would give them a much larger R & D budget, marketing budget, and distribution network. It would immediately give both companies an increase in business by selling to the others' existing customer base. Seagate realizes that they need to diversify also into SSDs in order to survive longterm.

This is one instance where it would be beneficial to both companies, and help keep prices competitive.

August 4, 2012 | 09:30 AM - Posted by mAxius

welp segate went after lacie

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