Samsung intends to buy SanDisk
To date, flash memory market is estimated by experts at 15 billion dollars. It is therefore not surprising that the most active players all forces seeking to improve their position on it and detached from competitors. Yesterday, several Korean Internet resources as well as Reuters and Bloomberg disclosed information according to which the company plans to buy Samsung SanDisk, produces mp3-players, flash cards, as well as solid drives.
Today, Samsung is the world’s largest producer of flash memory cells on the basis of NAND market share of 42.3% according to figures for the second quarter of this year. It is followed company with Toshiba and Hynix 27.5% from 13.4% of the market.
In turn, the company SanDisk is the largest customer NAND-memory (according to the analytical organization iSuppli), as well as the owner of many patents for flash memory technology. For the right of their licensing Samsung SanDisk contributes annually from 400 to 500 million dollars.
The rapid decline in the prices of flash memory this year due to overload the market badly hit by SanDisk positions on the New York Stock Exchange: in 2008 for shares in the company collapses at 59%. According to the report, published in July, the company lost almost 68 million dollars that it has become the biggest financial loss since 2001.
According to market experts, there is no need to pay high license costs, as well as gaining access to client base for the realization of SanDisk NAND-chips own production are the main causes of Samsung interest in its acquisition.
At the moment the South Korean manufacturer chooses not to throw stones loud words. “We are considering various possibilities for SanDisk, but that a final decision has been taken”, - a company representative said James Chang (James Chung).
Besides Samsung, California company to look to other players. For example, in August became aware that SanDisk is interested in acquiring the world’s largest supplier of hard disks - the company Seagate Technology, which plans to emerge early next year of solid drives on the market.
SanDisk itself surprisingly quickly reacted to the announcement of plans of Samsung. In issued several hours after the appearance of news statement, she said: “We are meetings periodically with other companies about potential business relations. We appreciate all the suggestions, but prefer not to comment on market rumors or speculation “.
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