Shares of Western Digital (NASDAQ:WDC) soared today following reports that the company is making significant progress in its discussions with Kioxia Holdings. According to a Reuters report, the talks have advanced to a point where they’re now considering a deal structure.
This proposed structure would result in Kioxia owning 43% of the new entity, Western Digital claiming 37%, and the rest going to the current shareholders of both firms. However, it’s crucial to note that no concrete agreement has been reached yet. Moreover, this potential merger could face regulatory hurdles, especially due to antitrust concerns in several countries, including the U.S. and China.
Regardless of a deal, Wall Street analysts have a consensus price target of $42.53 on WDC stock, implying over 17% upside potential, as indicated by the graphic above.