Western Digital to spin off flash memory business by 2024

According to Neowin , in a press release just released, Western Digital said that divesting the flash memory business is the best and most feasible alternative at this time after fully evaluating various options. The company believes that the independent separation will facilitate its efforts to create value for shareholders when industry conditions improve.

Separating operations is the best solution Western Digital chooses

Western Digital CEO David Goeckeler said the company has been building separate flash and hard disk drive (HDD) businesses and separating its operating capabilities for years, and he believes the new plan to separate the divisions will position each company for even more long-term success in the years ahead.

The plan to spin off Western Digital's flash memory and HDD businesses is still subject to board approval, along with other conditions such as the availability of financing and how the spin-off businesses will be structured to be tax-free. The spin-off is currently scheduled to take place in the second half of 2024.

Western Digital had previously been in talks to merge with another flash memory company, Japan-based Kioxia. However, Reuters reported that those talks stalled last week after one of Kioxia's investors, SK Hynix, expressed opposition to the merger. Western Digital did not mention the Kioxia deal talks in its press release or its recent earnings call.

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