WD enters into JDAs with little companies like 4DS to develop new technology.
The little company does work without the shackles of bureaucracy that exist in a massive corporation like WD, including being able to quickly raise funds on the open market to fund development.
WD provides technical input and insight to advance the tech to meet their strategic objectives via HGST.
If WD walks away, they haven't spent any money except on salaries for their HGST boffins.
WD can minimise their risk by accessing the tech via a 20 year license - they see everything that is going on inside the JDA under a knowledge sharing arrangement. They have first refusal to buy the business if a competitor makes an offer.
4DS Price at posting:
18.0¢ Sentiment: None Disclosure: Held
