Shaun Nichols in San Francisco, vnunet.com06 Sep 2008
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Consumer electronics and memory chip vendor Samsung is reportedly in talks to
buy Flash storage vendor SanDisk.
The rumour was first reported by news site PaidContent, which cited local
Korean news reports and company sources.
The report suggests that Samsung is attempting in part to eliminate the
annual royalty fees it pays to SanDisk, which can be as high as $353m annually.
The deal would also boost Samsung's reach within the Flash memory industry
and could strike a blow to rival Toshiba, which has a history of partnering with
SanDisk.
It could also help Samsung in the consumer electronics market. SanDisk's
Sansa MP3 player lines and Flash storage products could complement Samsung's own
products.
This is not the first time that SanDisk has been tied to acquisition rumours.
Last month, the company was said to be in talks with hard drive vendor Seagate.
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