SanDisk Corp Part Sells to Toshiba

SanDisk Corp is to sell a 30% share of their manufacturing capacity to Toshiba Corp, in a deal that is worth $1 billion. This deal is a direct affect from the current downturn in the memory chip industry, the deal is hoped to offer a ray of hope to SanDisk.

Just a month ago, Samsung tried to buy out SanDisk for $6 billion, but the offer was rejected. That offer meant that SanDisk shares were worth $26 per share, which they thought was too low. Analyst Edwin Mok of Needham & Co said that this new deal with Toshiba could make SanDisk even more attractive to Samsung.

With SanDisk and Toshiba working together, both will now be able to invest in the next generation of flash-memory products. SanDisk is expected to announce a third-quarter loss of 27 cents on revenue of $778.1 million.

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