Western Digital is planning to sell parts of Sandisk to ease their debt. The hard disk drive maker plans to raise $3.17 billion by selling some of its stake in former unit Sandisk through a secondary share sale at a 7.7% discount to its last close, the flash drive maker said on Wednesday.
What is Western Digital?
Western Digital is a major American data storage company known for designing and manufacturing hard disk drives, solid-state drives, and other data storage solutions. It was founded in 1970 as General Digital Corporation and later became Western Digital in 1971. The company initially focused on semiconductor products, before pivoting to storage technology.
Western Digital’s headquarters are located in San Jose, California, United States, in the heart of Silicon Valley. Over the decades, the company has grown into one of the largest global storage manufacturers, competing with Seagate and Toshiba in the HDD and SSD markets. Western Digital is recognized for its innovations in data storage, reliability, and enterprise solutions, serving both consumer and business markets. Its product portfolio includes desktop and laptop drives, enterprise storage systems, and high-performance SSDs for gaming and professional applications.
Today, Western Digital remains a key player in global data storage, driving technological advancements and shaping the way digital information is stored and accessed.
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Western Digital is expected to swap the 5.8 million shares up for sale with debt held by affiliates of J.P. Morgan and BofA Securities, the two banks, who are also the lead bookrunners for the offering, will offload the shares on behalf of their affiliates.
What is Sandisk?
SanDisk is an American company that designs, develops, and manufactures flash memory products and storage solutions. Founded in 1988 by Eli Harari, Sanjay Mehrotra, and Jack Yuan, SanDisk quickly became a pioneer in flash memory technology, producing reliable and high-performance storage devices for consumers and enterprises. The company specializes in USB flash drives, memory cards, solid-state drives (SSDs), and embedded flash memory for smartphones, cameras, and other electronics.
SanDisk’s headquarters are located in Milpitas, California, United States, in Silicon Valley, a hub for technology innovation. Over the years, the company has played a major role in expanding the adoption of portable digital storage and influencing the development of consumer electronics. Its products are widely recognized for durability, speed, and quality.
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Sandisk shares fell about 2.13% in after-market trading on Tuesday.
By monetizing part of its former unit, the company can strengthen its balance sheet, reduce leverage, and position itself to invest in core operations and growth initiatives.
Leveraging secondary share offerings through established financial institutions allows Western Digital to access capital efficiently while maintaining market confidence. The transaction may signal to investors that the company is taking proactive steps to optimize its capital structure, support liquidity, and sustain long-term competitiveness. The sale underscores the importance of financial agility in supporting ongoing technological leadership in the global data storage sector.
By selectively divesting parts of non-core holdings, firms like Western Digital can improve liquidity, manage debt obligations, and maintain flexibility to respond to market shifts or invest in emerging opportunities.