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 without an agreement.