Yesterday, news broke out that electronic storage company Western Digital were in “heavy discussions” with memory chip makers SanDisk over an “extensive business opportunity”. This escalated in a short period of time and WD has announced that they are to buy SanDisk for $19 billion.
SanDisk is the third largest manufacturer of flash memory worldwide, whereas Western Digital is more known for their Hard Disk, but it comes not as a surprise as both are dominating the electronic storage market in a time where memory is in vast demand.
While the deal is announced, it still needs to be looked at by several official parties before going ahead, including the FTC since both companies have Headquarters in California, the trade commission will judge whether or not the deal is anti-competitive or could have underlining hints towards an out ruling of either company.
Right now however, Western Digital expects the acquisition to complete by the third quarter of next year meaning that San-Digital could be a headlining company for the distribution of storage globally by the end of 2016.
So, what are your thoughts on Western Digital’s mega-bucks purchase? A good idea to further the development of either/both companies, or maybe a way to overturn a rival competitor in the market of storage? Let us know what you think!