SanDisk Entertains Buyout Offers From Micron, Western Digital
Flash storage outfit SanDisk has a couple of suitors in Western Digital and Micron, two of the company's rivals. Nothing is yet imminent, though SanDisk is in talks with both outfits about a potential sale. It's not known what the asking price is for SanDisk, which has a market capitalization of more than $14.3 billion.
News of the sales talks comes from Bloomberg and the "people with knowledge of the matter" that it spoke with. According to those sources, SanDisk has hired a bank to evaluate the situation and perhaps help facilitate a sale, if talks get that far. As of right now, no decision has been made on the matter.
The idea of a buyout has investors excited. SanDisk's stock spiked by as much as 17 percent to $72.49 in after hours trading after closing at $61.77 at the end of the day on Tuesday. It's fallen a few dollars today since hitting that high, but is inching its way back up -- SanDisk shares were up nearly 12 percent at $69.10 at the time of this writing.
SanDisk is a major player in the flash memory market. Having access to home grown chips is a big advantage for storage players, which have been aggressively pushing solid state media. The volatility of the flash memory market is the primary reason OCZ fell on hard times and was acquired by Toshiba.
Speaking of which, SanDisk operates flash plant facilities with Toshiba and would likely need the company's thumbs up for a sale.
News of the sales talks comes from Bloomberg and the "people with knowledge of the matter" that it spoke with. According to those sources, SanDisk has hired a bank to evaluate the situation and perhaps help facilitate a sale, if talks get that far. As of right now, no decision has been made on the matter.
The idea of a buyout has investors excited. SanDisk's stock spiked by as much as 17 percent to $72.49 in after hours trading after closing at $61.77 at the end of the day on Tuesday. It's fallen a few dollars today since hitting that high, but is inching its way back up -- SanDisk shares were up nearly 12 percent at $69.10 at the time of this writing.
SanDisk is a major player in the flash memory market. Having access to home grown chips is a big advantage for storage players, which have been aggressively pushing solid state media. The volatility of the flash memory market is the primary reason OCZ fell on hard times and was acquired by Toshiba.
Speaking of which, SanDisk operates flash plant facilities with Toshiba and would likely need the company's thumbs up for a sale.
