Samsung Acquisition talks with SanDisk

Samsung Electronics Co. were looking at a number of ways of tying up with SanDisk Corp. The electronics giant is even considering a possible acquisition of SanDisk, the world’s largest flash-memory card maker.

Analysts have said that if Samsung push this acquisition, it could help Samsung reduce the amount of royalties that they have to pay out to SanDisk. The acquisition could also allow Korean electronics giant to have a much tighter control over the memory market.

SanDisk currently get most of their chips from a joint venture that it has with Toshiba Corp., although Samsung are one of their suppliers. At this moment, the global memory-chip market seems to be suffering from an oversupply, a result of the global economy.

Source – The Wall Street Journal