Samsung says mulling SanDisk options
Samsung Electronics Co Ltd said it was considering “various opportunities” regarding SanDisk, in response to reports it was interested in bidding for the US flash memory maker.
“We are looking at various opportunities regarding SanDisk, but nothing has been decided yet,” James Chung, a spokesman for Samsung, told Reuters.
Shares in SanDisk have tumbled since mid-May, when they reached a recent peak just above $33. The stock closed at $13.46 on Thursday, for a total market value of $3.2 billion according to Reuters Knowledge.
Online news provider eDaily said Samsung, the world's top maker of memory chips, was interested in acquiring SanDisk, whose shares have tumbled amid a steep downturn in the memory market. It said Samsung had retained JPMorgan as an advisor.
Samsung, which is the world's top maker of NAND flash chips and pays SanDisk 400 billion won ($353.8 million) a year in licensing fees, is looking at reducing that expense through the acquisition, eDaily also reported.
Analysts said an acquisition of SanDisk could pay off for Samsung, which has been struggling with steep price drops in NAND flash memory chips, used in storage devices and digital gadgets.
“Although SanDisk and (world No. 2 flash maker) Toshiba are partners, there are doubts as to whether SanDisk will continue to invest (in their venture),” said James Song, an analyst at Daewoo Sec. “So in the medium to long term, Samsung would be able to gain more control over the flash market.”
“By acquiring SanDisk, Samsung could also reduce expenses related to royalties, and also use SanDisk's marketing presence to establish itself in the flash-based computer market.”
Others were more doubtful of any immediate impact a purchase could have.
“As long as Toshiba manages the output (at the two companies' NAND lines), even if Samsung becomes largest shareholder in SanDisk it would have no impact on supply,” said Park Hyun, an analyst at Prudential Investment and Securities.
SanDisk, widely known for its memory storage cards, in August was the subject of speculation that computer storage drive maker Seagate Technology Inc could be interested in buying all or part of it. (Reuters)
ADVERTISEMENT
Continental Dohányipari Revenue Nears HUF 64 bln in 2022
Parl't Approves Amendments to Legislation on Judiciary
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
.jpg)
