Western Digital (WDC) Stock Pops on Revived Merger Talks

  • Western Digital (WDC) stock is up Thursday on reports of restarted merger talks.
  • Sources claim the company is considering a combination with Kioxia Holdings.
  • Discussions between the two companies originally started back in October 2021.
Front of a Western Digital (WDC Stock) building in Malpitas, California.

Source: Valeriya Zankovych / Shutterstock.com

Western Digital (NASDAQ:WDC) stock is gaining on Thursday after reports claimed that merger talks with Kioxia Holdings have restarted.

Reports that the two companies were considering a merger date back to October 2021. However, several issues kept those talks from reaching fruition. Issues included “valuation discrepancies” and concerns about getting approval from the Japanese government.

With this latest news, however, it looks like both companies want to combine into one publicly traded company. The two already have a partnership in the form of a joint flash memory chip factory in Yokkaichi, Japan.

Will the Merger Go Through This Time?

That’s hard to say. Neither company is speaking about the talks, as they don’t comment on speculation. However, insiders claim that the ongoing discussions are fluid with no hard details have been ironed out just yet.

What we do know is Western Digital has been considering strategic alternatives since June 2022. This merger could be just what the company needs. There’s also potential that Western Digital will split off its flash-memory and hard drive businesses, Reuters notes.

No matter the case, WDC stock is seeing strong trading volume today alongside the merger reports. As of this writing, more than 4.1 million shares have changed hands. That’s quickly approaching the company’s daily average trading volume of about 4.8 million shares.

WDC stock is up 5.6% as of Thursday morning.

Investors looking for even more stock market news are in the right place!

InvestorPlace has them covered with all of the hottest stock market news traders need for Thursday! A few examples include what has shares of Bed Bath & Beyond (NASDAQ:BBBY), Silvergate Capital (NYSE:SI) and Coinbase (NASDAQ:COIN) stock on the move today. You can catch up on all that news at the links below!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/01/western-digital-wdc-stock-pops-on-revived-merger-talks/.

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