Filing Flows › Western Digital (WDC) › Takeover & LBO
Is Western Digital (WDC) a takeover target?
A leveraged buyout at today's price plus 30% ($347.92 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $209.50 a share (−22% against today's $267.63). At $133.3B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $347.92 | today's $267.63 plus 30% |
| × shares | 384.0 million | |
| = Equity value | $133.6B | |
| + Debt refinanced | $1.1B | |
| − Cash | $1.3B | |
| = Enterprise value | $133.3B | 21.9× EBITDA of $6.1B |
| Fees | $2.7B | 2% of the price |
| New debt | $33.5B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $102.5B | 75% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $15.6B | $6.6B | $2.6B | $2.9B | $30.7B |
| Year 2 | $16.7B | $7.0B | $2.3B | $3.4B | $27.3B |
| Year 3 | $17.6B | $7.4B | $2.1B | $4.0B | $23.3B |
| Year 4 | $18.4B | $7.7B | $1.8B | $4.5B | $18.8B |
| Year 5 | $18.9B | $8.0B | $1.4B | $5.0B | $13.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 16.8× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $133.9B | |
| − Debt left | $13.8B | |
| = Buyer's equity | $120.1B | |
| Money multiple | 1.17× | on $102.5B put in |
| Buyer's yearly return (IRR) | 3.2% |
Price against return
What the buyer makes at other premiums over today's $267.63; the IRR reaches 20% at $209.50 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $294.39 | 8.1% |
| 20% | $321.16 | 5.5% |
| 30% | $347.92 | 3.2% |
| 40% | $374.68 | 1.2% |
| 50% | $401.44 | −0.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $14.5B | |
| EBITDA, last 12 months | $6.1B | 42.1% of revenue |
| Depreciation and amortization | $391M | |
| Capital spending | $572M | |
| Debt | $1.1B | |
| Cash | $1.3B | |
| Share price | $267.63 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 12% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Western Digital would cost about $347.92 a share, $133.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $299.75 | $115.1B |
| Median | 30% | $347.92 | $133.6B |
| High end (a quarter paid more) | 31% | $350.60 | $134.6B |
Western Digital's latest quarter
Western Digital, Q1 FY27: revenue $4.4B (+56% year over year), operating margin 46.7%, net earnings $1.8B, operating cash flow $1.6B. The chart follows the revenue to costs, profit and cash.
Questions
Is Western Digital being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Western Digital?
A leveraged buyout at today's price plus 30% ($347.92 a share) would return about 3% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $209.50 a share (−22% against today's $267.63). At $133.3B it would be larger than any buyout on record (the model flags anything over $60 billion), so this is a thought experiment more than a prospect.
What would a takeover of Western Digital cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Western Digital would cost about $347.92 a share, $133.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.