Samsung divests its hard-drive unit, sells to Seagate

By on April 19, 2011 at 8:01 AM.

Samsung divests its hard-drive unit, sells to Seagate

Reuters is reporting that Samsung Electronics has agreed to sell its hard drive business to Seagate Technology for $1.4 billion in cash and stock. The move is seen as two pronged: first, it will allow Samsung to exit an extremely competitive market and refocus its efforts on its successful memory-chip business. Secondly, it will allow Seagate to be more competitive with Western Digital — a company that has announced its intentions to purchase Hitachi’s hard-drive business for more than $4.3 billion. “The transactions and agreements significantly expand Seagate’s customer access in China and Southeast Asia,” reads a statement released by both companies. The deal will see Samsung become the second largest shareholder in Seagate — with a nearly 10% share worth over $687 million — and the assets should be transfered sometime in 2011. More →

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Sprint urges government to oppose AT&T’s acquisition of T-Mobile

By on March 28, 2011 at 4:31 PM.

Sprint urges government to oppose AT&T’s acquisition of T-Mobile

Sprint CEO Dan Hesse has already expressed his concerns about AT&T’s purchase of T-Mobile from Deutsche Telecom, but today Sprint officially announced its opposition to the deal in a press release. Sprint states that the transaction will create a carrier that’s roughly three times its size — in terms of revenue — and “reverse nearly three decades of actions by the U.S. government.” Sprint noted that AT&T and Verizon Wireless would dominate the U.S. wireless postpaid market and be firmly in control of the availability and price of key inputs, such as backhaul, should the deal go through. “Sprint urges the United States government to block this anti-competitive acquisition,” writes Sprint’s senior vice president of government affairs, Vonya McCann “This transaction will harm consumers and harm competition at a time when this country can least afford it.” If it’s any consolation to Sprint, one FCC official believes that the deal won’t be rubber stamped, and could be a “steep climb at least.” Hit the jump to read the full release. More →

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