SanDisk inks $1 billion deal with Toshiba, Samsung still eyeing company

Toshiba and SanDisk have been in a number of joint ventures for some time now, but it looks like the two companies are now starting what could be a more drawn out break-up process, with SanDisk announcing today that it's selling 30% of its manufacturing capacity outright to Toshiba in a $1 billion deal. For the time being at least, the two will remain 50/50 partners in the remaining 70% of the companies' joint factories, though Toshiba will apparently get 65% of the production capacity at those factories. As MarketWatch points out, this latest move comes just a month after SanDisk rejected a $6 billion buyout offer from Samsung, and some analysts are now speculating that Toshiba's deal will only make the company a more attractive target for Samsung. Nothing is expected to get wrapped up before August of 2009, however, which is when Samsung's current royalty arrangement with SanDisk is due to expire.

[Via The Inquirer]

[tom @ Oct 20th 2008 3:05PM]

Looks like Samsung is looking for ways to spend its dirty money.

[Waveblade @ Nov 4th 2008 1:40PM]

Dirty money?

[Radukk @ Oct 20th 2008 3:26PM]

Toshidisk sounds better than Samdisk.

[Samboini @ Oct 20th 2008 3:33PM]

Or Sandisk sounds fine as it is.

[bangladeshiluv @ Oct 20th 2008 3:42PM]

toshiba is still pining over the failure of HD-DVD. strokes ego by climbing in bed w/ sandick

[Oli D @ Oct 20th 2008 3:49PM]

i would

[ishism @ Oct 20th 2008 8:03PM]

Samsung's $6billion buyout sounds too good to pass up. Hopefully it doesn't end up biting them in the end.

[DiZBeDaMiT @ Oct 21st 2008 12:21PM]

I wonder what the logic to these decisions are?