Seagate said Monday that it has scrapped talks with private equity firms to go private because it couldn't get the price it wanted.
In a statement, Seagate said talks to go private are off "principally because it determined that the indications of the valuation range were not in the best interest of the company and its shareholders."Seagate went private at the top of the 2000 tech bubble and couldn't replicate that magic again. Seagate said in October that it had interest in a transaction to go private.
Now what? Seagate CEO Steve Luczo said the company will spend $2 billion on buying back its shares.
Meanwhile, Seagate said the hard drive market is improving and expects 170 million units to ship in the fourth quarter across the industry. Seagate also projected fourth quarter revenue to be at least $2.7 billion with gross margins of 19.5 percent.
Wall Street was expecting revenue of $2.58 billion with margins of 19.64 percent.