NEW YORK (TheStreet) -- Western Digital (WDC) - Get Report stock is surging by 8.05% to $45.89 in early afternoon trading on Tuesday, as the company has acquired more than 100 patent assets from IBM (IBM).
The patents are in distributed storage, object storage, and emerging non-volatile memory, and will be added to Western Digital's existing portfolio of more than 10,000 patents and patent applications.
Additionally, the two companies entered into a patent cross-license agreement. Terms of the deal were not disclosed.
"This agreement reflects our continued focus on innovation and sets the stage for even more rapid advancement and commercialization of new data storage solutions," Western Digital COO Mike Cordano said in a statement.
Shares of Western Digital had plunged yesterday after analysts raised concerns that its proposed merger with SanDisk (SNDK) might crumble.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Western Digital's strengths such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels are countered by weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.
You can view the full analysis from the report here: WDC
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.