SanDisk to be acquired by Western Digital or Micron?

Posted on Thursday, Oct 15 2015 @ 12:08 CEST by Thomas De Maesschalck
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Rumors are going around that SanDisk is working with an unnamed bank to explore a potential sale of its business. People familiar with the matter told Bloomberg that Micron and Western Digital are in talks with the company about a possible take-over, but no firm decision has been made so far. SanDisk is one of the larger manufacturers of NAND flash memory, but a potential deal would likely need the blessing of joint-venture partner Toshiba.

SanDisk's stock jumped 11.22 percent on the rumor to $68.70 a share and is now trading at a market cap of $14.04 billion. Analysts believe a deal could make sense for WD as it would give the storage firm a strong foothold in the SSD market:
“We believe that Western Digital makes sense as an acquirer” at a total deal cost of about $15 billion, given the risk to the hard-drive market from flash memory, Deepon Nag, an analyst at Macquarie Group Ltd., wrote in a note to investors. A deal with Micron also make sense but could be complicated by a technology partnership it has with Intel Corp., Nag wrote.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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