August 21, 2024 /SemiMedia/ -- Wedbush analyst Matt Bryson has reported that Western Digital is planning to spin off its NAND and SSD business, with an estimated valuation ranging between $10 billion and $22 billion.

The company will be divided into two separate entities: one focusing on hard disk drives (HDD) and the other on NAND flash and SSD. Current CEO David Goeckeler will oversee the NAND and SSD business, while Global Operations EVP Irving Tan will take on the role of CEO for the HDD business.

Bryson highlighted that the independent valuation of Western Digital's NAND and SSD business could range from $10 billion to $22 billion, based on the company's $19 billion acquisition of SanDisk nine years ago.

Despite Western Digital's revenue reaching $13 billion last year—double that of Seagate—its market cap stands at $21.9 billion, nearly identical to Seagate's. Bryson estimates the HDD business is valued between $19 billion and $24 billion, with the NAND/SSD business valued between $10 billion and $22 billion.

He concluded that the total valuation of the two companies post-split should be at least $30 billion, potentially exceeding $40 billion, with full benefits expected to be realized by 2025.