Toshiba pushed back on Tuesday against a Bloomberg report claiming it is locked in a takeover fight with Seagate Technology for TDK’s hard-disk-drive magnetic-head business. A Toshiba spokesperson called the report “inconsistent” with the company’s understanding of events, while Japan Industrial Partners, Toshiba’s main backer, also said the article did not reflect its own understanding.
The original Bloomberg story, citing people familiar with the matter, said Toshiba began talking to TDK in the spring and Seagate entered over the summer with a higher bid. The deal could be worth several billion dollars. TDK is reportedly considering a sale of the unit as part of a strategic pivot toward batteries, passive components, and sensors. Toshiba also denied that three-way talks with TDK and Seagate had occurred about future supplies of hard-drive heads.
Magnetic heads are essential components that read and write data on spinning disks. TDK is currently the only independent manufacturer of these heads, supplying Seagate, Toshiba, and Western Digital. Control of the unit would create leverage across the HDD supply chain at a time when AI data centers are lifting demand for high-capacity storage. Seagate shares fell about 2% in premarket trading Tuesday, while the broader market gained, indicating company-specific pressure.
Adding to investor caution, Seagate’s CEO sold shares earlier this month under a pre-arranged Rule 10b5-1 plan. Last week, Seagate stock tumbled after reports said Toshiba plans to double its AI data-center drive capacity by fiscal 2027. Morgan Stanley and Bernstein said the market overreacted to that news, helping the stock rebound Monday. Seagate remains below its 52-week high of $1,145, has more than tripled in 2026, and reports earnings around October 28. No agreement has been confirmed by any of the three companies.
