Seagate’s Maxtor Grab Expected to Bring Leverage
The acquisition of Maxtor Corp. by Seagate Technology for approximately $1.9 billion Wednesday is poised to boost Seagate’s Far East manufacturing capabilities and strengthen its position to dampen expected PC pricing changes in the coming year.
However, industry analysts point out that Seagate will have its hands full completing the technical aspect of the Maxtor merger in late 2006 as it simultaneously transitions to perpendicular recording on many of its devices.