US Flash memory maker SanDisk is in merger talks with two American data storage biggies- Micron and Western Digital. Bloomberg news reported yesterday that the said two companies were interested in buying $12.6 billion worth business of SanDisk by early next year. After this news spread like wildfire, SanDisk shares surged to 11.6% in after hours trading in New York.
Currently, the storage industry is being influenced by consolidation trend. Big companies are getting busy in buying startups or their competitors in order to either gain the customer base or cut down competition.
Last month, Chinese Company UniSplendor acquired 15% stake in Western Digital for $3.8 billion. The company is even planning to acquire 50% of US Company WD by the end of next year.
Early this week, Dell purchased worlds leading storage maker EMC for $67 billion and this came as a surprise to many in the industry. But most industry analysts feel that the deal of Dell purchasing EMC proved profitable only to the latter than the former.
Coming back to SanDisk it struggled to pick up in sales from last year, especially, after its relationship soured with Apple. Till early 2014, SanDisk was supplying Apple the required storage components for its Mac books, tablets and mobile phones. But for a reason, the shipments of SanDisk to Apple started to decline in 2014.
More details will be updated shortly!