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Western Digital buys Komag. Having platters matters

Pays one billion in cash
Fri Jun 29 2007, 08:40
HARD DRIVE MAKER Western Digital pulled $1 billion out of its pocket to buy Komag, which makes media for the units.

Komag makes the platters that spin inside a hard drive and the media is the message WD wants to spin to the media.

John Coyne, WD's CEO, reckons having the media firm inside his pocket allows the firm to better control its own future. Western Digital bought a head firm called Read Rite in 2003.

Komag customers who aren't called Western Digital but Hitachi Data Systems may not be too happy buying platters from the competition.

So Hitachi will probably buy its platters somewhere else. µ

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