“Samsung Electronics said late Tuesday that it has offered to acquire SanDisk Corp. for about $5.85 billion, capping several days of speculation about a potential combination of the two companies,” Dan Gallagher reports for MarketWatch.
“In a letter to SanDisk, Samsung said it was reiterating a previous offer to buy the company for $26 per share in cash, in a deal that would not be contingent to financing arrangements,” Gallagher reports. “But SanDisk rejected the deal in its own statement Tuesday.”
Gallagher reports, “SanDisk Chief Executive Eli Harari said that Samsung’s acquisition offer ‘does not provide appropriate value to our stockholders and is opportunistically timed at the trough of an industry-wide downturn.'”
Gallagher reports, “Samsung had said in its letter that it’s ‘deeply disappointed’ that SanDisk ‘continues to cling to unrealistic expectations on both its standalone market value and an appropriate merger price.’ The letter said the two companies have been in talks for the past four months.”
Full article here.
Owen Thomas reports for Valleywag, “Why does Samsung want SanDisk? Simple: It needs to bulk up to contend with the might of Apple, one of the largest buyers of flash memory.”
“Regulators may block Samsung’s SanDisk bid. But they ought to keep an eye on Apple, too. Antitrust cops tend to spend all their time watching for monopolies — sellers who wield undue influence over a market. They should crack open their investment glossaries and look up “monopsony” — the condition that exists when a buyer dominates a market,” Owen opines.
Full article here.
What would the new name be… SamsDisk or SamsDung?
I know that was a joke (Joe), but just in case, sandisk will remain the same, according to samsung.
How did sandisk get better market share than Sony and Microsoft in the mp3 player? I have never see one of those.
oh good… i like SanDisk just the way it is thank you.
@viktor
And I’ve never seen a Zune OR Sony out in the wild.. Did see a Zune once in a dusty display case at a Best Buy.
Yeah, I have never seen a Zune in the wild either.
Monopolies like MS? Who’s watching them?
I too, have never seen a Zune in the wild. I have seen Sandisk players though.
I see iPods and iPhones daily.
if i was steve, i would invest a few million in sandisk for developing new products. ofcourse with the contract that states that they cannot sell said developed product until 1 year after apple has released it. the few million will help sandisk stay afloat while helping both apple and sandisk’s partnership.
apple does have the money. and they do seem to be interested in developing apple only hardware.
“monopsony” = Adobe
@Everyone..
Yes, you are all correct, I haven’t see a zune either. But yes, I have saw many sonys. But they are all crappy ones.
Please, forget I said zune… uppss!, I said it again…
I’ve seen a Zune in the wild: last year. My daughter’s best got the black Zune. This year, she got the pink nano (3G). And she is loving the hell out of it.
My daughter showed her black iPod (80G) to her best friend. She stopped bringing her Zune to our house. Last month, she brought her pink nano.
ah who cares… let them wither and devalue into nothing
Damn… since I read about this a few days ago as a possibility, I should have grabbed some SNDK (of course, it would have helped if I actually had some disposable money…) since it ran up 39% yesterday, and was up over 8% today as I write this…
VERY hard to make a claim that Apple is creating a monopoly just because it is the largest buyer of flash memory, and so it commands bigger discounts than other buyers. That’s called purchasing power, not a monopoly.
I saw a Zune once in the wild. This is a true story: At the state wrestling tournament two years ago I saw I kid warming up while listening to one.
Kid got his ass handed to him in the match. Just saying . . .
I’ve seen a Zune. A bud of mine was showing it to some people when we were at a Pizza place, then someone texted me and when I pulled out the iPhone this girl was like “Oh wow! An iPhone!” and dude put the Zune away. Seriously. This was last year when they were brand new, but since he’s got himself one of those LG lookalikes. I dunno. Seems he’s got one of those “Anything but Apple” mentalities going.
They should crack open their investment glossaries and look up “monopsony” — the condition that exists when a buyer dominates a market,” Owen opines.
So? Wal-Mart’s been doing that for years. They even dictate the prices they’ll pay to their vendors.
Is that what he says monopsony is? Hmmmm This is what the dictionary says:
monopsony |məˈnäpsənē|
noun ( pl. -nies) Economics
a market situation in which there is only one buyer.
Can I say bad use of ‘Apple-prompted’. Just skimming, I thought that Apple had encouraged Samsung to purchase SansDisk; as inexplicable as that would be.