We have been covering the development on the memory market where the climate has become ever harsher as many memory manufacturer are having a hard time making ends meet. This has resulted in several of the bigger companies looking to acquire some of the smaller ones, and SanDisk is one of these companies looking to be acquired as both Seagate and Samsung has shown interest. Samsung seemed to be the most eager of the two, but the negotiations have been anything but easy.
SanDisk earlier rejected a bid from Samsung and the two have used rather hard words in the letters being passed back and forth. Samsung has decided, after SanDisk rejected its bid of 26 dollar/stock, retracted its bid entirelly. It all comes down to that SanDisk and Samsung are unable to decide on the value of SanDisk, but according to Samsung there are additional factors;
“Your surprise announcements of a quarter billion dollar operating loss, a hurried renegotiation of your relationship with Toshiba and major job losses across your organization all point to a considerable increase in your risk profile and a material deterioration in value, both on a stand-alone basis as well as to Samsung,” – Excerpt from Samsung’s letter to SanDisk.
Even though the relationship between SanDisk and Samsung may have become even more infected sources indicate that Samsung is still looking to acquire. It just comes down to the price.
