4:45 PM – Samsung has been on the climb for quite some time now. It’s the only company out there that is full on competing with Apple. With a huge marketing budget, the company not too long ago posted a record $9.2 billion in unaudited profits.
Seagate, a well-known hard drive and storage solutions company has been on a stock repurchase spree. According to a press release, the company paid Samsung a whopping .5 billion to purchase back 32.7 million in shares.
Back in 2011, Samsung sold its hard drive business to Seagate for $1.38 billion, which was split evenly between cash and stock. Samsung still owns 12.5 million Seagate shares.
Steve Luczo, Seagate’s Chairman, President and Chief Executive Officer said the following:
We are pleased that Samsung intends to continue to be a long-term strategic shareholder and valued business partner with Seagate. Our success with the Samsung hard disk drive products that we acquired has exceeded our expectations and we are very encouraged with our joint product development for enterprise solid state drives. We look forward to continuing to benefit from Dr. Jeong’s counsel and guidance as part of our Board of Directors and we are very optimistic about the future of our flash technology partnership
Samsung has seen nothing but profits as of late, so another $1.5 billion wouldn’t hurt, right? Samsung owned a good amount of stake in Seagate and is still a strong partner with the company.
What do you think?