Elliott asks Western Digital to separate units

Tuesday, 03. May 2022 14:00

Western Digital Corp, an American data storage company, can create added value if it separates its hard-disk-drives unit and its branch that develops flash memories, Elliott Investment Management said on Tuesday. Elliott manages about $1 billion in Western Digital's funds.

"Western Digital has underperformed—operationally, financially and strategically—as a direct result of the challenges of operating both the HDD and Flash businesses as part of the same company," the investment firm said in a letter to Western Digital.

Western Digital's shares soared 9.46% to $59.02 in the premarket, as Elliott predicted the separation of units could help the technology company's shares cross the $100 mark by the end of 2023.

Related Links: Western Digital Corp.
Author:
Baha Breaking News (BBN) / BU