Seagate Buys Samsung HDD Unit

Seagate has acquired Samsung Electronics’ hard disk drive (HDD) operations for $1.37 billion in a move that boils the market down to two players. Seagate and Western Digital now control 90 percent of the HDD market with Toshiba a distant third.

In many respects, the Seagate-Samsung deal rhymes with Western Digital’s acquisition of Hitachi’s storage unit. You have two U.S. companies teaming up with an Asian partner to gain more scale, boost margins and focus more on the enterprise. Related: Samsung’s hard-drive unit sale could lead to massive market consolidation.

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