October 21. 2015 22:37
Major hard drive maker Western Digital has announced that it is acquiring SanDisk, one of the biggest and most familiar names in flash storage, creating a new global memory giant of sorts.
Western Digital says the deal, which involves acquiring a combination of cash and SanDisk stock valued at about US$19 billion, will double its addressable market and give it long-term, lower-cost access to solid state technology.
Both companies argue that the acquisition is beneficial to shareholders, but what it will mean for consumers will depend upon how successful a newly swollen Western Digital can be at using Sandisk's resources to create new and innovative storage products.
A long term joint venture between Sandisk and Toshiba, which holds claim to the invention of NAND Flash memory technology back in 1987, surely sweetens the deal for Western Digital and adds some capability when it comes to newer memory technologies like 3D NAND.
The deal still requires approval by SanDisk shareholders. It is expected to close in the third quarter of 2016.