Western Digital is moving to cut its debt burden by selling part of its remaining stake in flash memory business Sandisk in a deal valued at $3.17 billion.
The transaction involves swapping 5.8 million Sandisk shares for debt held by affiliates of J.P. Morgan and BofA Securities. The shares are being sold at a 7.7% discount to Sandisk’s last closing price.
After the sale, Western Digital’s stake in Sandisk will drop to roughly 1.7 million shares, valued at nearly $1 billion. The company plans to eventually divest its remaining holdings as part of a broader strategy to reduce its total debt, which stood at $4.69 billion as of January 2026.
The move follows Western Digital’s spinoff of Sandisk last year as it reshapes its operations to focus solely on hard disk drive technology.
Sandisk shares slipped about 3% in premarket trading following the announcement, while Western Digital stock rose close to 2%.
Demand for storage products continues to benefit from expanding artificial intelligence infrastructure and hyperscaler investments.
