Reports of Western Digital’s Merger Help its Share Prices Grow
In the stocks market, there is always a company gaining lead and prowess over other companies in terms of share prices. However, the performance demonstration of such companies is short-lived and they only last for a day or two.
However, some companies managed to demonstrate significant and promising performance in terms of their share prices. These companies manage to gain share price increases due to strong reasons. This is the reason why their stock prices stay bullish for a longer period of time than other companies.
At present, there are many companies such as Microsoft, Apple, Google, and many more experiencing a surge in their share prices. This is mainly because of the earnings reports these companies have shared for the recently completed quarter of 2021.
There are also other companies apart from these major ones that are giving their best and as a result, gaining in on their share prices. One such company is Western Digital that has observed a significant rise in its share prices in the running week.
The company has reportedly experienced a rise in its share prices on Wednesday, August 25, 2021. The data shows that the share price for Western Digital experienced a 7.8% rise on the particular day’s trading.
The reason behind the increase in share prices for the company is the recent rumors that have started emerging surrounding the company’s possible merger. Reports have started emerging that Western Digital might be going for a merger with Kioxia Holdings.
The sources reveal that Kioxia Holdings is a company based in Japan and the merger between the two companies might be an expensive one. According to inside sources, the merger between the two companies may take place for at least $20 billion.
On an international level, this news has been covered by Wall Street Journal and it is catching the eye of many investors. Through the merger, the company will have recognition in more than one country. Therefore, more investors would be moving in to make investments in the company.
As of now, no information or confirmation has been made from Western Digital’s end. Some of the media sources did try to get in touch with the officials at both firms but they were not able to get any comments out of them.
There are chances that for now, both companies are trying to finalize the deal under the table before they make it official. No matter the decision, Western Digital has already started benefitting from it, as it has started experiencing a significant rise in its share prices from the rumors.
The inside sources at Western Digital have revealed that the investors may get to learn about the merger between the two companies in mid-September.