Seagate will pay 1.2B as part of the Bain consortium to acquire toshiba’s memory. This will reduce the cash balance to ~1.4B, back to where it was a year ago. Last year, seagate borrowed 1B debt and laid off employees/cut spending in order to continue to afford 180M a quarter dividend payments. More to buy its stock. At this point, the company’s management seems to be trying to support the stock price rather than creating a lasting company. It is a financial sham...
The toshiba deal will give small % guaranteed flash supply. For what?? No different than the deal with Samsung. Seagate’s flash business is immaterial and stagnant. Flash prices are declining. What is the point of having more flash if you don’t know how to use it better than others in a declining market.
Also, what kind of bozos hire a CIO when they need key management talent? This wouldn’t be on top of the priority list for real managers who care about their company. It is nice to have at best. It feels like hiring a new chef for the kitchen when the ship is burning. More pain for employees. These monkeys will layoff more workers, create more pain for existing employees to keep the stock afloat until they retire...