SNDK acquistiion by Samsung is a rumor withut base. Everywhere anyone you ask in Wall Street, call Samsung management, call SNDK management. This is a hoax!
Samsung is probably wanting to lessen the royalties they from
500 mill to less than 200 mill. This is just a story to employ that. For a six bill dollar co $500 mill is very heavy royalty. Watchout there is NO BUY and samsung pays less and stock goes to single digit this month.
This is the only way the mkt mkrs can shake off the shorts.
Short now because there is NO DEAL.
Samsung can easily pick this co for less than $10 bucks after it reduces the royalties. It will be stupid to pay high royalties and pay high price for this stock when they provide majority of the income and SNDK is net negative
You are missing a point. After acquiring SNDK Samsung will lessen the supply of NANDs in the market driving up the price by 25-30%, thats tons of additionla money for Samsung. Antitrust will not hold because there are many NAND manufacturers in the world, its not like one Sirius acquiring the only other competitor XM.
As an observer, I would like to add that there's far too much anti-trust and monopoly issues with Samsung buying Sandisk. It's unlikely to happen and Harari will not let go. JMO.
I call this quote from Samsung "base":
"We are considering various opportunities regarding SanDisk but nothing has been decided," Samsung spokesman James Chung said. He did not elaborate.