Western Digital Eyes SanDisk Scalp to Lead Storage Race
Both companies are looking to make merry amidst falling flash storage prices.
Hard disk drive maker Western Digital Corp is in advanced talks to acquire memory chipmaker SanDisk Corp. According to a Reuters report, the development has been confirmed by people familiar with the matter, as a frenzy of dealmaking in the semiconductor sector continued.
Western Digital has so far prevailed over other suitors for SanDisk, which has a market capitalization of $14.6 billion, the report adds quoting people involved with the arrangement.
As per the report, negotiations are ongoing and a deal is not certain, but Bloomberg News seem certain that both companies could reach a deal as soon as this week. Having said that, any deal with SanDisk will require a sign off from Toshiba.
SanDisk uses Toshiba’s foundries to make its chips and the two have an important intellectual property-sharing joint venture. If and when this deal comes through, Western Digital will become the biggest name in the storage industry.
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