Western Digital reports mixed Q2; Apollo Global, Elliott make $900M investment

By Yasin Ebrahim 

Investing.com --  Western Digital reported Tuesday mixed second-quarter results as losses were wider than expected but revenue beat estimates. The quarterly results were overshadowed by hopes of a turnaround as private equity heavyweights Apollo Global Management (NYSE:APO) and Elliott Investment Management made investments in the company. 

Western Digital Corporation (NASDAQ:WDC) was trading marginally lower in afterhours following the news.

The company reported a loss of 42 cents on revenue of $3.11 billion, compared with estimates for a loss of 14 cents on revenue of $2.99B. 

The memory device maker also revealed that Apollo Global Management had purchased $900 million of its convertible preferred stock together with Elliott Investment Management at an initial conversion price of $47.75 per share. 

Both companies were granted board seats. Apollo's Reed Rayman was appointed to Western Digital’s board. Western Digital and Elliott also revised their June 7, 2022 letter agreement to grant Elliott the right to a board seat.

"We see substantial opportunity and value creation ahead for Western Digital and are excited to make this investment, which enables Western Digital to continue executing on its innovation-led strategy and producing market-leading products for its customers. We look forward to working with David and the Board as they position the company for long-term success," Apollo Global Management said.