Western Digital Plans $3.09B Sandisk Stake Sale at 9.4% Discount

Western Digital Corp. is moving forward with plans to raise $3.09 billion through the sale of a stake in its former subsidiary Sandisk Corp., according to sources familiar with the matter. The offering comes at a price range of $535 to $555 per share, representing a 9.4% discount to Sandisk's closing price on Tuesday, February 17, 2026.

The transaction marks a significant step in Western Digital's ongoing strategic realignment following the spin-off of Sandisk as an independent entity. The company's decision to divest a portion of its remaining stake comes as it seeks to strengthen its balance sheet and focus on its core storage business operations.

Sources indicate that the offering has already attracted substantial investor interest, with reports suggesting it is oversubscribed. This strong demand reflects continued confidence in Sandisk's market position and growth prospects in the flash memory and storage solutions sector.

Western Digital's move follows a broader trend among technology companies seeking to optimize their capital structures and streamline operations. The proceeds from the stake sale are expected to provide the company with additional financial flexibility as it navigates the competitive storage market and invests in next-generation technologies.

The timing of the offering appears strategic, coming amid heightened investor interest in semiconductor and storage-related equities. Sandisk's strong market position in NAND flash memory and solid-state drives has made it an attractive investment target, particularly as demand for data storage continues to surge with the growth of cloud computing, artificial intelligence, and other data-intensive applications.

Industry analysts note that Western Digital's decision to sell at a discount, while potentially dilutive to existing shareholders, reflects the company's desire to ensure a successful offering in current market conditions. The 9.4% discount provides an attractive entry point for new investors while still maintaining a premium valuation for Sandisk's shares.

The transaction also highlights the evolving dynamics in the storage industry, where companies are increasingly focusing on specialization and operational efficiency. Western Digital's partial exit from Sandisk allows both companies to pursue independent growth strategies while maintaining strategic relationships in areas of mutual benefit.

For Western Digital, the capital raised through this offering could be deployed toward several strategic initiatives, including research and development, capital expenditures, debt reduction, or potential acquisitions to strengthen its competitive position in the storage market. The company has been working to establish itself as a leader in both traditional hard disk drives and emerging solid-state storage technologies.

Sandisk, as an independent entity, continues to benefit from its strong brand recognition and technological leadership in flash memory solutions. The company's products serve a wide range of applications, from consumer electronics to enterprise data centers, positioning it well for continued growth in the expanding digital economy.

The successful execution of this offering could set a precedent for similar transactions in the technology sector, particularly among companies that have undergone recent spin-offs or restructuring. It also demonstrates the ongoing appetite for high-quality technology assets among institutional investors, even in a market environment characterized by elevated interest rates and economic uncertainty.

Western Digital's management team has emphasized that the company remains committed to its long-term strategy of providing comprehensive storage solutions to customers worldwide. The partial stake sale in Sandisk represents a tactical move to optimize the company's capital structure while maintaining strategic flexibility for future growth opportunities.

As the transaction moves toward completion, market observers will be watching closely to see how Western Digital deploys the proceeds and whether the company pursues additional strategic initiatives to enhance shareholder value. The strong investor response to the offering suggests that the market views the transaction favorably and sees potential for both Western Digital and Sandisk to create value as independent entities.

The offering also comes at a time when the storage industry is experiencing significant technological transitions, including the shift toward higher-density NAND flash, the emergence of new memory technologies, and the increasing importance of storage solutions optimized for artificial intelligence and machine learning workloads. Western Digital's strengthened financial position could enable it to invest more aggressively in these areas and maintain its competitive edge.

For Sandisk, the transaction provides additional liquidity and market validation for its independent strategy. The company's ability to attract strong investor interest despite the discount suggests that the market views its growth prospects favorably and is willing to support its continued expansion in the global storage market.

The completion of this offering will be closely watched by other technology companies considering similar strategic moves, as it could provide valuable insights into market appetite for partial stake sales in high-quality technology assets. The transaction also underscores the ongoing importance of storage technologies in the broader technology ecosystem and the significant capital requirements for companies operating in this space.

As Western Digital and Sandisk move forward as partially independent entities, the success of this transaction could influence future strategic decisions by both companies and potentially reshape competitive dynamics in the storage industry. The strong investor response suggests that the market sees value in this strategic realignment and is optimistic about the prospects for both companies going forward.