Memory chipmaker Western Digital said on Monday it would split itself into two companies that would focus on the hard drive and flash memory markets, days after talks of a merger with Japan’s Kioxia stalled.
Western Digital shares were up nearly 10% before the bell.
The company launched a review of alternatives last year after activist investor Elliott Management disclosed a stake of nearly $1 billion in Western Digital and pushed it to separate those businesses.
Reports last week said merger talks between Western Digital and Japan’s Kioxia Holdings had stalled as opposition from Kioxia investor SK Hynix complicated the on-again, off-again deal.
Source: Economic Times