Seagate Technology has said it intends to buy rival company Maxtor for $1.9 billion. Both companies produce hard drives. The deal, priced at 60% of Maxtor's closing share price, is intended to acquire Maxtor's customers, not its technology. Seagate, which also makes drives for Microsoft's Xbox 360, will have over 40% of the hard drive market share. The Scotts Valley, California, based Seagate had 30% of the hard drive market. Provided the deal makes it past regulatory committees, Maxtor shareholders will receive .37 of a share of Seagate common stock for every 1 share of the Milpitas based company.
Microsoft's Xbox 360 prefer's Western Digital and Seagate drives.
( z1 prefer :ARG0 ( z2 product :name ( z3 name :op "Xbox" :op 360 ) :poss ( z4 company :name ( z5 name :op "Microsoft" ) ) ) :ARG1 ( z6 drive :mod ( z7 company :name ( z8 name :op "Western" :op "Digital" ) ) :mod ( z9 company :name ( z10 name :op "Seagate" ) ) ) )