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.

Leave a Comment