Western Digital Announces Review of Strategic Alternatives
June 07 2022 - 8:40PM
Business Wire
Western Digital Corporation, (“Western Digital”) (Nasdaq: WDC)
today announced that it is reviewing potential strategic
alternatives aimed at further optimizing long-term value for its
shareholders. The Executive Committee of the Western Digital Board,
chaired by Western Digital CEO, David Goeckeler, will oversee the
assessment process and fully evaluate a comprehensive range of
alternatives, including options for separating its market-leading
Flash and HDD franchises. Following constructive dialogue with many
of Western Digital’s shareholders, including one of the company’s
largest investors, Elliott Investment Management L.P. (together
with its affiliates, “Elliott”), this review builds on Western
Digital’s ongoing efforts to drive innovation-led growth and create
shareholder value.
“The Board is aligned in the belief that maximizing value
creation warrants a comprehensive assessment of strategic
alternatives focused on structural options for the company’s Flash
and HDD businesses,” said Goeckeler. “Through this process, we are
actively engaging in a broad range of strategic and financial
alternatives that will help further optimize the value of Western
Digital, including Elliott’s offer to invest incremental equity
capital in our Flash Business. We look forward to continuing our
constructive dialogue with Elliott as this process unfolds.”
Elliott Managing Partner Jesse Cohn and Senior Portfolio Manager
Jason Genrich said, “Western Digital is strongly positioned in an
industry that represents a compelling growth opportunity, and we
have confidence in David and his management team’s execution,
strategic vision and focus on shareholder value. We’re encouraged
by the positive direction of our discussions so far, and by Western
Digital’s openness to considering a full separation of its Flash
business. We are pleased that Western Digital’s Board is conducting
this review, and Elliott is prepared to provide strategic resources
and additional capital to help the company realize the full value
of both of its businesses.”
In conjunction with the strategic review process, Western
Digital and Elliott have signed a customary non-disclosure
agreement and a letter agreement; such letter agreement will be
filed on a Form 8-K with the Securities and Exchange
Commission.
Qatalyst Partners and Lazard are serving as Western Digital’s
financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP
is serving as Western Digital’s legal counsel.
About Western Digital
Western Digital is on a mission to unlock the potential of data
by harnessing the possibility to use it. With Flash and HDD
franchises, underpinned by advancements in memory technologies, we
create breakthrough innovations and powerful data storage solutions
that enable the world to actualize its aspirations. Core to our
values, we recognize the urgency to combat climate change and have
committed to ambitious carbon reduction goals approved by the
Science Based Targets initiative. Learn more about Western Digital
and the Western Digital®, SanDisk® and WD® brands at
www.westerndigital.com.
Forward-Looking Statements:
This press release contains forward-looking statements within
the meaning of federal securities laws, including statements
regarding the Company’s review of strategic alternatives. The
Company’s review of strategic alternatives may not result in a
separation of the Company’s flash business, a recommendation that a
transaction occur or result in a completed transaction, and any
transaction that occurs may not increase shareholder value. The
forward-looking statements contained in this press release are
based on management’s current expectations and are subject to risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements, including: future responses to and effects of the
COVID-19 pandemic; volatility in global economic conditions
including in the debt and equity markets; regulatory restrictions;
contractual restrictions; impact of business and market conditions;
impact of competitive products and pricing; impact of tax
treatment; risks associated with restructurings, acquisitions,
divestitures, mergers, joint ventures and our strategic
relationships; our substantial level of debt and other financial
obligations; changes to our relationships with key customers;
actions by competitors; and other risks and uncertainties listed in
the Company’s filings with the Securities and Exchange Commission
(the “SEC”), including the Company’s Form 10-K filed with the SEC
on August 27, 2021, to which your attention is directed. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date hereof, and the Company undertakes no
obligation to update or revise these forward-looking statements to
reflect new information or events, except as required by law.
©2022 Western Digital Corporation or its affiliates. All rights
reserved. Western Digital, the Western Digital design, the Western
Digital logo, are registered trademarks or trademarks of Western
Digital Corporation or its affiliates in the US and/or other
countries.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220607006380/en/
Robin Schultz Western Digital Public Relations 1-408-573-5043
robin.schultz@wdc.com
T. Peter Andrew Western Digital Investor Relations
1-949-672-9655 peter.andrew@wdc.com
Western Digital (NASDAQ:WDC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Western Digital (NASDAQ:WDC)
Historical Stock Chart
From Jul 2023 to Jul 2024