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Western Digital Offloads Sandisk At Peak Valuations—Strategic Masterstroke Or Lost Upside?

Western Digital has moved decisively to sell the bulk of its remaining Sandisk shares, offering approximately 5.8 million shares at $545 per share for total proceeds of roughly $3.17 billion. The transaction comes nearly a year after the February 2025 spin-off and just days before a critical tax-related deadline, underscoring a carefully timed capital allocation decision rather than a reactionary exit. Management has indicated that the sale will be executed via a debt-for-equity exchange with major financial institutions, with proceeds earmarked for debt reduction. Notably, Western Digital will retain about 1.7 million Sandisk shares temporarily, but intends to dispose of those as well. The market reaction has been constructive, with Sandisk shares rising following the announcement and Western Digital stock extending its strong run.