Western Digital plans to spin off flash memory and hard disk business: Report

According to the latest report, memory storage device maker Western Digital said on Tuesday it was reviewing strategic options, including options for spinning off its flash memory and hard drive businesses.

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The announcement comes a month after prominent activist investor Elliott Management disclosed it took a nearly $1 billion stake in the company and pushed for a spin-off of its flash and hard drive businesses. Elliott owns about 6 percent of the California-based company.

New York-based Elliott has also said it provided more than $1 billion in incremental equity capital to Western Digital’s flash memory business, with an enterprise value of $17 billion to $20 billion, the report said.

“Through this process, we are actively pursuing a broad program of strategic and financial options that will help further optimize Western Digital’s value, including Elliott’s offer to our company,” Western Digital CEO David Goeckeler said in a statement. Advice on investing in incremental equity capital for the flash memory business.”

(via)