Report: Western Digital and Micron exploring SanDisk acquisition

Flash storage maker SanDisk may soon be under a new corporate umbrella if a report by Bloomberg is correct. Western Digital and flash rival Micron Technologies are both conducting separate talks with SanDisk to explore an acquisition, and SanDisk has hired a bank to explore a sale of its business, according to Bloomberg's sources.

Despite these murmurs, SanDisk has not made any final agreement to be acquired, and Bloomberg also notes that the talks may not result in a deal at all. One issue might be SanDisk's partnership with Toshiba—the companies operate joint flash production facilities in Japan, and the site speculates that Toshiba would have to approve any final offers that come out of these talks.

Deepon Nag, an analyst quoted by Bloomberg, says that a WD takeover of SanDisk would make sense, citing the threat to the hard drive maker's core business from flash memory. Micron could also strengthen its flash market position with a deal, but the analyst believes Micron's relationship with Intel could be a stumbling block.

SanDisk shares rose sharply on the news yesterday, and its market capitalization is now $12.7 billion, based on its $68.70 share price as of the close of NASDAQ trading today.

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