Western Digital Sells Sandisk Stake for $3.17B and Books All 2026 HDD Output
Western Digital will sell 5.8 million Sandisk shares in a $3.17 billion secondary offering at a 7.7% discount to reduce leverage. It has sold all 2026 hard drive production to AI data centers, reflecting surging demand.
1. Secondary Offering Details
Western Digital is selling 5.8 million Sandisk shares in a secondary offering priced at a 7.7% discount, raising $3.17 billion. J.P. Morgan and BofA Securities will swap these shares with debt held by their affiliates and handle the offload.
2. Debt Reduction Strategy
Proceeds are earmarked for debt reduction, aiming to lower leverage and strengthen the company's balance sheet before pursuing further growth investments.
3. AI-Driven Hard Drive Demand
The company has sold its entire 2026 hard drive production to AI data center customers, underscoring robust storage demand driven by artificial intelligence infrastructure.
4. Remaining Sandisk Stake
After the sale, Western Digital will retain a Sandisk stake valued at nearly $1 billion, which it intends to dispose of over time.