The flash memory market may not see additional consolidation after all. We noted in early September that Samsung was pursuing a buyout of SanDisk. The latter subsequently asked for more money, which led Samsung to initiate a hostile takeover.
Today, Reuters reports that Samsung has pulled out of the potential $5.9 billion deal. What's changed? Samsung CEO Lee Yoon-woo wrote to SanDisk saying, "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. . . . As a result of these developments, we are no longer interested in acquiring SanDisk at $26/share."
Indeed, SanDisk sold 30% of its manufacturing capacity to Toshiba for a cool $1 billion earlier this week, and its latest quarterly results don't look too inspiring. However, Reuters quotes a couple of analysts who believe Samsung may not have given up yet. Jim Handy from Objective Analysis says, "Today's announcement should help Samsung push SanDisk's share price lower, making it possible to acquire the company at a better deal." Meanwhile, Song Myung-sup of HI Investment & Securities thinks the wording of Samsung's letter leaves room for another deal.
|Microsoft sketches out its latest Surface Pro||3|
|AMD says its Vega cards will launch "over the next couple of months"||82|
|Samsung's high-end Chromebook Pro will be available May 28||20|
|GeForce 382.33 drivers are ready for a match of Tekken 7||0|
|HP upgrades Envy and Spectre x2 laptop lineups||26|
|Asus ROG Strix X370-F and B350-F mobos take wing||4|
|MSI debuts slot-powered Radeon RX 560 Aero ITX OC cards||16|
|Lian-Li PC-O12WX puts graphics cards under glass||7|
|Asus B250I Gaming brings ROG Strix bling at a lower price||17|