SanDisk to Samsung: No Way Jose

By on Sep 19, 2008 at 12:59 AM
Opinions September 19, 2008

Samsung was recently jilted by SanDisk, one of our favorite SD card and flash storage manufacturers, in a takeover attempt. SanDisk turned down nearly $6 billion from Samsung saying that it wasn’t really adequate – in many respects. It seems SanDisk doesn’t have any self-esteem issues there. Samsung has offered a $26-per-share cash sum but it doesn’t look like it’s enticing enough for the folks at SanDisk. Samsung CEO Yoon-Woo Lee says that SanDisk “continues to cling to unrealistic expectations on both its standalone market value and an appropriate merger price.” Is that an accurate assessment or words born out of rejection?

With the economy turning more sour by the second, was it really wise for SanDisk to turn down the offer from the electronics giant? What do you think? All we know is that we need that 16GB microSD jump off fast!

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  • Blackula

    i think that was a very smart move for Sandisk. Not saying samsung is a bad company or nothing but Sandisk been in the game for some time now and they know what they are doing. I mean why merge to lose what was build from the ground up?

    And to me the reason i think Samsung wants Sandisk to improve there SSD drives b/c sandisk have the technology to make it happen to push beyond boarders where others are stuck at.

  • Galvatron

    that an samsung has this nasty history of of fraud.

  • Kevin

    I think the real reason for Sammy is that SanDisk has so many patents in its hand, Sammy will no longer have to pay for those and get almost all market share too

  • Jesse

    I think it has less to do with technology, patents, etc and more to do with money. Samsung approached SanDisk back in May about possibly purchasing the company at a premium when their stock price was quite a bit higher. SanDisk’s stock has dropped since then due to market oversupply.

    SanDisk is alleging Samsung is just taking advantage of the low stock price and is undervaluing the company.

    It will be interesting to see how this plays out. If the board is just holding out for no good reason, Samsung could try and initiate a hostile takeover campaign. As a public company, SanDisk has a fiduciary duty to act in the best interest of its shareholders. In essence if the deal is good enough, they are technically obliged to accept it. But as we saw with Yahoo, things often aren’t that simple.

  • Who?

    Yes, where is the 16gb microsdhc?!!!! Come on.

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