{"id":441764,"date":"2022-05-04T15:27:00","date_gmt":"2022-05-04T12:27:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/marketwatch-western-digital-stock-shoots-toward-best-day-in-two-years-after-activist-pushes-for-business-split\/"},"modified":"2022-05-04T15:27:00","modified_gmt":"2022-05-04T12:27:00","slug":"marketwatch-western-digital-stock-shoots-toward-best-day-in-two-years-after-activist-pushes-for-business-split","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/marketwatch-western-digital-stock-shoots-toward-best-day-in-two-years-after-activist-pushes-for-business-split\/","title":{"rendered":"#MarketWatch: Western Digital stock shoots toward best day in two years after activist pushes for business split"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2d2250960f9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2d2250960f9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/marketwatch-western-digital-stock-shoots-toward-best-day-in-two-years-after-activist-pushes-for-business-split\/#%E2%80%9CMarketWatch_Western_Digital_stock_shoots_toward_best_day_in_two_years_after_activist_pushes_for_business_split%E2%80%9D\" >&#8220;MarketWatch: Western Digital stock shoots toward best day in two years after activist pushes for business split&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/marketwatch-western-digital-stock-shoots-toward-best-day-in-two-years-after-activist-pushes-for-business-split\/#Elliott_offered_to_kick_in_an_additional_investment_to_help_the_company_separate_its_flash_and_hard-disk-drive_businesses\" >Elliott offered to kick in an additional investment to help the company separate its flash and hard-disk-drive businesses<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/marketwatch-western-digital-stock-shoots-toward-best-day-in-two-years-after-activist-pushes-for-business-split\/#Emily_Bary\" >Emily Bary<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CMarketWatch_Western_Digital_stock_shoots_toward_best_day_in_two_years_after_activist_pushes_for_business_split%E2%80%9D\"><\/span>&#8220;MarketWatch: Western Digital stock shoots toward best day in two years after activist pushes for business split&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Elliott_offered_to_kick_in_an_additional_investment_to_help_the_company_separate_its_flash_and_hard-disk-drive_businesses\"><\/span>\n  Elliott offered to kick in an additional investment to help the company separate its flash and hard-disk-drive businesses<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000833252\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000833252\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Shares of Western Digital Corp. were rocketing in Tuesday trading after Elliott Investment Management issued a call for the chip company to fully separate its flash and hard-disk-drive businesses and offered at least $1 billion in additional funds to help facilitate such a split.<\/p>\n<p> Elliott argued in a letter to Western Digital\u2019s<br \/>\n        WDC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204213617\/composite\" class=\"positive\">+14.47%<\/bg-quote><br \/>\n       board of directors that the company failed to deliver the expected benefits from its 2016 merger with SanDisk that gave it a strong foothold in flash memory, saying that Western Digital has \u201cunderperformed\u2014operationally, financially and strategically\u201d as a result of operating the two \u201cvastly different businesses.\u201d<\/p>\n<div class=\"paywall\">\n       Western Digital shares were up 14.6% in Tuesday morning trading and on track for their largest single-day percentage gain since March 24, 2020, when they rose 17.8%. <\/p>\n<p><strong>See also: Western Digital stock rockets after Elliott Management calls for a split of the business<\/strong><\/p>\n<p>Though Western Digital reorganized itself several years back to place the hard-disk-drive and NAND flash businesses in separate units, Elliott said that the company needs to do more to fully realize the value of its assets. <\/p>\n<p>\u201cWestern Digital\u2019s current valuation makes clear that the investment community has not been persuaded that this necessary-but-insufficient step has solved the problem,\u201d Elliott said in the letter. <\/p>\n<p>In Elliott\u2019s view, a full split of the flash business could help Western Digital\u2019s stock reach a price upwards of $100 a share by the end of 2023. The stock closed Monday at $53.92, prior to Elliott\u2019s call for a separation. <\/p>\n<p>\u201cWe agree that Western Digital is an excellent, yet undervalued, company with strong positions in our flash and HDD businesses and look forward to engaging with Elliott to discuss their views,\u201d a Western Digital spokesperson told MarketWatch. \u201cOur Board of Directors is committed to acting in the best interests of all our shareholders and will carefully consider Elliott\u2019s ideas.\u201d<\/p>\n<p>Elliott said that it has invested about $1 billion in Western Digital, amounting to over 6% of the company, and it offered a further investment to help make a business separation h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en. Elliott announced that it would put at least $1 billion of incremental equity capital into the flash business at a $17 billion to $20 billion enterprise value either to help enact a spinoff transaction or serve as equity financing for a sale or merger. <\/p>\n<p>The investment-management company asked Western Digital\u2019s board to undergo a \u201cfull strategic review\u201d of the proposal.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cWe view Elliott\u2019s offer as a validation of our view that there should not be a significant disparity on the valuation of Seagate<br \/>\n        STX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201824240\/composite\" class=\"positive\">+1.75%<\/bg-quote><br \/>\n       and Western Digital\u2019s HDD business (not considering Seagate\u2019s capital return) and that the company\u2019s flash business is undervalued,\u201d Wells Fargo analyst Aaron Rakers wrote in a Tuesday note to clients.<\/p>\n<p>Prior to Tuesday\u2019s rally, Western Digital\u2019s stock had tumbled 23.7% over the past 12 months, while Seagate shares had lost 11.2% and the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.48%<\/bg-quote><br \/>\n       had inched 0.6% lower over the same time.<\/p>\n<p>Evercore ISI\u2019s C.J. Muse wrote that he and his team \u201creadily agree with Elliott that WDC is seriously undervalued and that the company has not achieved the strategic benefits since acquiring SanDisk in 2016,\u201d though they weren\u2019t sold that a spinoff was the right course of action. <\/p>\n<p>\u201c[H]erein lies the conundrum \u2013 the DRAM industry re-rated (to some degree) post-consolidation to 3 large players, whereas today there are 5 large players in NAND (SEC, Kioxia, WDC, Hynix, MU),\u201d the Evercore team wrote. \u201d We believe the re-rating for the NAND industry comes after consolidation, not necessarily before.\u00a0So we aren\u2019t sure a spinout makes any sense.\u201d<\/p>\n<p>Western Digital is due to host an analyst day May 10, and Baird analyst Tristan Gerra is curious to hear any commentary from the company on its existing structure. It has previously pointed to synergy benefits between the two businesses, he said. <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Emily Bary\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/marketwatch.com\/author\/emily-bary\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/emilybary\",\"text\":\"@emilybary\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:ebary@marketwatch.com\",\"text\":\"ebary@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n              <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/marketwatch.com\/author\/emily-bary\" aria-label=\"Emily Bary author page\"><\/p>\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Emily_Bary\"><\/span>Emily Bary<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><\/a><ufc-follow-author-widget product=\"marketwatch\" author-id=\"213_MW\" author-name=\"Emily Bary\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fwestern-digital-stock-shoots-toward-best-day-in-two-years-after-activist-pushes-for-business-split-11651591993%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7CB6-E4295132E3BF%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;MarketWatch: Western Digital stock shoots toward best day in two years after activist pushes for business split&#8221; Elliott offered to kick in an additional investment to help the company separate its flash and hard-disk-drive businesses Shares of Western Digital Corp. were rocketing in Tuesday trading after Elliott Investment Management issued a call for the chip&#8230;<\/p>\n","protected":false},"author":1,"featured_media":441765,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-536558\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-441764","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/441764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=441764"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/441764\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/441765"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=441764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=441764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=441764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}