A promotional YouTube video and check on
Google Maps reveals that Western Digital Corporation (NYSE:WDC) has
not just moved to a new location, but has moved directly next to a
potential acquirer.
South Korea’s Samsung Electronics’ subsidiary,
Samsung Information Systems America (SISA), is located immediately
next door to Western Digital’s new
offices. The buildings are actually
attached. Samsung’s website describes SISA
as,
“..engaged in
researching ‘frontier’ technologies for creating new
businesses, as well as developing core technologies to enhance the
competitiveness of existing products of Samsung. The research
activities of SISA focus on the development of hard disk drives,
digital TV technologies, printer software, wireless connectivity
and high-level software such as middleware.”
Western Digital began to relocate to the new address in
September and has cited
the building’s cost and close proximity to employee’s
homes as reasons for the move. The new office in
Irvine, California, however, is only a 20 minute drive from the
previous Lake Forest, California location according to Google
Maps.
The Orange County Business Journal
reported in April 2006 that rumors were floated at the time
that Samsung was interested in acquiring Western Digital, sending
shares higher. Recently, competitor Seagate
announced that it was in talks with a potential
acquirer. Those talks apparently ended recently
without an agreement.