Western Digital to spin off flash memory business by 2024

According to Neowin , in a recently released press statement, Western Digital said that divesting its flash memory business is the best and most feasible alternative at this time after a thorough evaluation of various options. The company believes that separating it into an independent entity will facilitate its efforts to create value for shareholders as industry conditions improve.

Separating operations is the best solution that Western Digital has chosen.

Western Digital CEO David Goeckeler said that over the years, the company has established separate business units for flash drives and hard drives (HDDs), as well as separating operational capabilities. He believes the new plan to separate these divisions will help each company achieve even greater long-term success in the years to come.

Western Digital's plan to spin off its flash memory and HDD businesses still requires board approval, along with other conditions such as available financing and how the subsidiary business is structured to qualify for tax exemptions. The spin-off is currently scheduled to take place in the second half of 2024.

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

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