Sandisk drops after Western Digital confirms plan to unload $3 billion in stockWestern DigitalWDC $283.70 (0.92%) is cashing in more of its SandiskSNDK $578.80 (-5.77%) position.
The hard drive seller is exchanging more than $3 billion in Sandisk shares as part of a debt-for-equity swap.
The two companies were once one, but Western Digital spun off a little more than 80% of its flash drive business in February 2025, and already exchanged the lion’s share of what remained in a separate debt-for-equity swap in June.
This move was very, very well telegraphed by Western Digital, which recently confirmed plans to monetize its Sandisk position before the one-year anniversary of that split (February 21). And Sandisk’s press release makes clear that the company is not the one selling more stock or making any money off of this.
That being said, being a high-flying stock that has a Bloomberg headline with “secondary offering” in it could, in theory, spark some turbulence.
Shares of Sandisk have indeed extended the day’s losses to more than 8% in the after-hours session before paring some of that decline.
