Western Digital to Get $900 Million From Apollo, Elliott (2)

Western Digital Corp. is receiving a $900 million investment led by Apollo Global Management Inc., getting financial firepower at a tough time for the memory industry that could see further consolidation. The chipmaker’s stock fell 6% in late trading on a disappointing revenue forecast.

Funds managed by Apollo are buying convertible preferred stock in Western Digital and Apollo Partner Reed Rayman will get a board seat, according to a statement Tuesday. Hedge fund Elliott Investment Management is also participating.

Tuesday’s investment is a precursor to a merger with Japan’s Kioxia Holdings Corp., according to people familiar with the ...