Western Digital is going to split into two independent companies next year, and both of them will focus on storage. One on HDDs and the other Flash Memory.
WD is spinning off HDD business because it’s low margin and holding back earnings/growth numbers which pissing off shareholders.
This is the reason for most spin offs these days, way to cut off underperforming business units to make the numbers look better and keep investors happy short term. A company will cut its overall revenue in half or more these days just to make a quick buck in the process, it’s really pathetic honestly.
Title translation:
WD is spinning off HDD business because it’s low margin and holding back earnings/growth numbers which pissing off shareholders.
This is the reason for most spin offs these days, way to cut off underperforming business units to make the numbers look better and keep investors happy short term. A company will cut its overall revenue in half or more these days just to make a quick buck in the process, it’s really pathetic honestly.
Other way around, their HDDs have decent margins while their flash business is losing money.