SanDisk (SNDK) Continues Climbing On Acquisition Hopes

SanDisk Corporation (NASDAQ: SNDK)

SanDisk had an incredible day in the market yesterday as the company announced that it is deciding whether or not it should be acquired. The gains from acquisition hopes are continuing today. Today, we’ll talk about the idea of an SNDK acquisition, whether or not it’s likely to come to fruition, how the market is reacting, and what we can expect to see from the stock moving forward.

SanDisk Has Several Potential Buyers

In several recent reports, we’ve heard of quite a few companies that are looking to acquire SNDK. Here’s the list of companies that have shown interest in the memory chip maker…

  • Samsung Electronics Co Ltd (OTCMKTS: SSNLF)
  • Micron Technology, Inc. (NASDAQ: MU)
  • Western Digital Corp (NASDAQ: WDC)
  • Tsinghua Unigroup – A technology firm out of China.

As a result of the incredible interest SanDisk is receiving from other firms, the company has hired experts in an attempt to see what the sale of their company would be worth. Considering the fact that SNDK has made the decision to hire experts, it’s clear that the company is open to an acquisition.

Who Is The Primary Candidate To Acquire SNDK?

All companies mentioned above would benefit greatly from a purchase of SanDisk. So, deciding which would be the prime candidate has more to do with financial data than anything else. With that said, by market capitalization, Samsung greatly leads the charge with a market cap of $156.36 billion, followed by Western Digital Corp at $21.07 billion and Micron Technology at $21.07 billion. When it comes to free cash flow, Samsung is also in the lead at $4.495 billion, followed by Western Digital at $1.63 billion and Micron Technology at 1.19 billion. Of course other factors like debt, borrowing ability and more will play into purchasing SNDK, a company with a market cap of more than $15 billion. Nonetheless, all of the companies mentioned above are more than capable of raising the funds, even at a decent premium. Now the real question is “Which company will be willing to offer the most?” Unfortunately, I don’t have an answer to this one.

What We Can Expect To See Moving Forward

At this point, I would be incredibly surprised if an acquisition didn’t actually happen. From my research, I’ve found that there are several firms that not only have an interest in acquiring the company, but the capability to do so. With SNDK hiring experts to decide how much money their company would be worth in an acquisition, it’s no secret that they are interested in moving forward. All in all, it seems as though SNDK investors have good news coming their way! Investors are obviously happy with what they’re seeing today as well. Currently (11:12), SNDK is trading at $76.00 per share after a gain of 5.56% so far today.

What Do You Think?

Will SNDK be acquired? Why or why not? Let us know in the comments below!

[Image Courtesy of My Memory]

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