Analysts question whether investors will accept the price and terms of the reported $20bn deal
A Western Digital office building in Irvine, California, the US. Picture: REUTERS/MIKE BLAKE
But analysts are questioning whether Kioxia’s investors will accept the price and terms of the reported $20bn all-stock offer from Western Digital, which would provide no cash to the Japanese firm and put a lower value on it than other comparable deals in the industry. Western Digital on Friday filed documents to issue more shares but did not disclose the size of the offering.
Analysts said the Intel deal provides a sense of what buyers are willing to pay for memory companies. Summit Insights Group analyst Kinngai Chan said Kioxia has about three times the sales of Intel’s memory unit, so Kioxia’s owners may want about three times the price, $25bn-$28bn.
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