Hitachi to form hard drive company with Toshiba, Fujitsu?

Japanese conglomerate, Hitachi, may be in talks with Toshiba and Fujitsu on forming a new company dedicated to hard drives and storage systems. The new company would combine the limping hard drive divisions of Hitachi and Toshiba as well as some of the storage systems technology from Fujitsu. Each would own a third. The three-way deal is being proposed as an alternative to a private equity buyout. Hitachi has been in discussions with equity firm Silver Lake and others about spinning off its money-losing hard drive group, according to sources and news reports. Those talks, however, have not gone smoothly, sources familiar with the discussions said.

For one thing, Silver Lake has a long association with Seagate Technology. Silver Lake took Seagate private years ago, restructured the company, and spun it out again. Seagate is now profitable and growing. However, the firm and the company have stayed friends. Silver Lake founder Jim Davidson tendered his resignation from Seagate's board in December. A bigger problem, though, might be cultural. Hitachi is still run like a more traditional Japanese company. That is, the company is somewhat wary of outsiders, but is likely more willing to trust other Japanese partners. One observer noted that a Japanese conglomerate seems a better fit than other proposals that have floated about. Another observed that even though Silver Lake and Hitachi have translators, they probably still aren't speaking the same language.

View: Full Story @ ZDNet Asia

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If hitachi's 7k1000 is anything to go by, I'd say this partnership will stand a pretty good chance against the big hd companies. It sure is a LOT quieter than anything seagate could come up with, not to mention faster...

so many companies merging now...:(

first
Samsung + Toshiba ==> TSST (Optical)
LG + Hitachi ==> HL-DT-ST (Optical)
Sony + NEC ==> Optiarc (Optical)...

now Hitachi + Fujitsu + Toshiba ==> ???

wow with so many companies merging, it lowers the choices available to us consumers...so manufacturer's can then adjust the prices with more ease to suit them...:(

To be fair they all produce lowend products and don't come close to the reputation of Seagate / WD. I see this as a good move as it would again give us three HD manufacturers after Seagate bought Maxtor, increasing competition in the sector. Obviously things aren't going well if Hitachi are making losses, so it's not like they are a thriving company trying to create a super monopoly.

theyarecomingforyou said,
To be fair they all produce lowend products and don't come close to the reputation of Seagate / WD. I see this as a good move as it would again give us three HD manufacturers after Seagate bought Maxtor, increasing competition in the sector. Obviously things aren't going well if Hitachi are making losses, so it's not like they are a thriving company trying to create a super monopoly.

You just nailed it! I agree, we need a third solid player to compete with Seagate and WD.

Zhivago said,

You just nailed it! I agree, we need a third solid player to compete with Seagate and WD.

I suppose your right...but remember the days when there was more choice available....like being able to choose between Maxtor, Seagate, Quantum, Fujitsu, Hitachi/IBM, WD, Toshiba...now its down to three bigger companies, WD, Seagate & Hitachi/Tosh/Hitachi...

to be honest though, its got its pros and cons...

Mean Mr Mustard said,
As long as it/anything works reliably at a fair price, why care who makes/designs/sells it. ;)

True; and lets be honest, there are hardly anyone who makes LCD panels, and yet, there isn't a single complaint.

Right now, there is bugger all difference in designs; its basically a race to the bottom, with each coming out with the bigger cheaper drive. In the end, the differences is so small, its down to brand loyalty. For me, I've used them all, and they're of all similar reliability.