Western Digital Stock Is Tumbling Thursday: What's Going On?

Western Digital Corp WDC shares are moving sharply lower Thursday following reports the company scrapped merger talks with Japan's Kioxia Holdings. 

What Happened: According to a Nikkei Asia report, Western Digital ended talks with Kioxia regarding a potential merger after failing to secure approval from certain Kioxia shareholders.

The report indicates the two companies were wanting to strike a deal by the end of October, but were unable to come to an agreement on terms because of conditions set forth by Kioxia's top shareholder Bain Capital.

Western Digital and Kioxia have seen earnings take a hit from headwinds in the memory chip space. Both companies are reportedly looking for capital infusions and exploring other options to help strengthen operations. 

Western Digital is scheduled to report fiscal first-quarter financial results before the market opens on Oct. 30. Analysts are anticipating an earnings loss of $1.90 per share and revenue of $2.65 billion, according to Benzinga Pro.

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WDC Price Action: Western Digital shares were down 10/6% at $37.69 at the time of writing, per Benzinga Pro.

Photo: courtesy of Western Digital.