
Western Digital completes SanDisk purchase - alfiedotwtf
http://www.zdnet.com/article/western-digital-completes-sandisk-purchase/
======
thetrb
So how can a company that has a market cap of around 8 billion buy another
company for 16 billion?

Are they mostly doing this by taking on debt?

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rgbrenner
Some stock.. some of Sandisk's cash.. but yes, mostly debt:

 _SanDisk shareholders will receive $67.50 in cash and 0.2387 Western Digital
share for each share of SanDisk stock._

[http://www.investors.com/news/technology/western-digital-
now...](http://www.investors.com/news/technology/western-digital-now-a-
storage-powerhouse-with-sandisk-acquisition/)

 _What many investors remain concerned about is that Western Digital is
planning to offer some $17 billion or so in debt to help pay for the SanDisk
buyout. Of that large sum, $3.0 billion will be a bridge loan. The rest is a
set of traunches that are secured and unsecured debt. The company also
telegraphed that it should be able to tap $4 billion of SanDisk’s cash to
repay the bridge._

[http://247wallst.com/technology-3/2016/03/09/did-western-
dig...](http://247wallst.com/technology-3/2016/03/09/did-western-digital-make-
a-good-enough-case-for-the-leveraged-sandisk-acquisition/#ixzz48nQRJ942)

~~~
lucaspiller
> The company also telegraphed

I assume this is business lingo for something, and doesn't mean they sent an
actual telegraph?

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AJRF
Telegraphing can simply mean the act of displaying something outwardly.

Used extensively in the context of E-Sports when someone does something that
the other player can see and prepare for.

~~~
jcadam
Or in boxing, "telegraphing" a punch, where you draw your arm back making it
obvious what you're about to do so that you're opponent can prepare to
block/dodge/counter/etc.

~~~
AJRF
Exactly correct. Perhaps your example is a little more relevant than mine.

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revanx_
I assume this move from WD was to be more aggressive on the SSD market?

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theandrewbailey
Seems like it, even though I can't imaging that hard drives will stop selling
anytime in the next 20 years.

I have a SanDisk Z400s in my work laptop. It seems a bit slow compared to the
other SSDs I have, but this particular line is rather low end. Still much
faster than the hard drive that I would have got had I not pressed for an SSD.

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Bombthecat
Good that i have shares from wd :)

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rozenmd
Historically the acquiring firm actually suffers a share price drop in the
days following the acquisition:
[http://www.investopedia.com/ask/answers/203.asp](http://www.investopedia.com/ask/answers/203.asp)

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dang
Url changed from
[http://www.forbes.com/sites/tomcoughlin/2015/10/21/western-d...](http://www.forbes.com/sites/tomcoughlin/2015/10/21/western-
digital-acquires-sandisk/) to a more accessible URL.

~~~
aksdj
Thanks. Forbes is awful.

