Western Digital to Buy SanDisk in $19 Bln Deal

*fm.cnbc.com/applications/cnbc.com/resources/img/editorial/2015/03/31/102550362-154278963.530x298.jpg?v=1427828042

(Reuters) - Hard disk drive maker Western Digital Corp said it would buy memory chip maker SanDisk Corp for about $19 billion, the latest in a wave of consolidation in the chip-making industry.

The cash-and-stock offer values SanDisk at $86.50 per share, or a total equity value of about $19 billion, using a five-day volume weighted average price ending on Oct. 20 of $79.60 per share of Western Digital stock.

SanDisk's shares rose 6.4 percent to $80 in pre-market trading. Western Digital's shares were down 1.1 percent at $74.

Demand for cheaper chips and new products to power Internet-connected gadgets, as well as a push from technology companies to consolidate suppliers, has led to record levels of dealmaking in the semiconductor sector this year.

The value of the SanDisk acquisition will depend on the closing and approval of an investment from a unit of China's state-backed Tsinghua Holdings Co Ltd [TSHUAA.UL], Unisplendour Corp Ltd in Western Digital, the companies said on Wednesday.

The deal is expected to close in the third calendar quarter of 2016.

(Reporting by Abhirup Roy and Devika Krishna Kumar in Bengaluru; Editing by Don Sebastian and Anil D'Silva)

Source: NYTimes

Big news in memory chip industry

SSD is future.
WD wants to go this way only !

But,first of all let the prices of SSD HDD comes down considerably.

$19 billion? Why does it sounds familiar?
So one of the leader in memory storage devices, Sandisk is worth an instant messaging app, WhatsApp.

Wow.

The biggest one till date is EMC afaik. 68bn$

I read it on The Verge, and people were crying foul about the deal like it's going to a bad ass company.

"Bas ass company" is seen in positive light. Equivalent to "uber cool" company. So what did you mean exactly?

bad, ass company

Vyom said:
"Bas ass company" is seen in positive light. Equivalent to "uber cool" company. So what did you mean exactly?

I meant in a bad way which was surprising for me. Never had bad things for WD.

Comma is everything. :lol:

- - - Updated - - -

dashing.sujay said:
I meant in a bad way which is was surprising for me. Never had bad things for WD.

Well, just waiting for SSD's cheaper.

Vyom said:
Comma is everything.

- - - Updated - - -

Well, just waiting for SSD's cheaper.

Seems that will take some time say a couple of years more to come down to our acquiring budget(except for those who has the ability to buy now at once).

and eventually the quality of pen drives will degrade ..... :-(

it was rare to see a sandisk card/ pendrive gone bad.

D

But Samsung will only worsen the quality of it imo.

:rofl:

icebags said:
and eventually the quality of pen drives will degrade .....

it was rare to see a sandisk card/ pendrive gone bad.

How do you infer this?