Western Digital today announced that the bankruptcy court presiding over the assets of Read-Rite Corporation approved the sale to Western Digital of substantially all of the assets of Read-Rite, including its wafer fabrication operation in
The assets are being acquired for cash consideration of approximately $95.4 million. The
Western Digital indicated that the planned acquisition is aimed at improving its access to recording head technologies over the long term and increasing its operational flexibility. In the near term, the company has secured adequate supply of recording heads for the foreseeable future, including 80GB technology, from merchant market suppliers.