Western Digital Is Buying SanDisk For $19 Billion

Sandisk being bought by Western Digital

Peripheral manufacturer Western Digital Corp is preparing to purchase competitor SanDisk for $19 billion.

We first reported last week that SanDisk was hoping to find a buyer for its business.

The company was reportedly talking to Western Digital and Micron Technologies about a possible purchase.

SanDisk was valued at approximately $12.6 billion as of the stock’s close of $61.77 eight days ago. The stock is down more than 35 percent year-to-date.

The current price of $19 places each share at $86.50 for a premium of 15% based on Tuesday’s close.

The hard disk sector has been experiencing a wave of consolidation as company’s attempt to maintain a decent profit margin at a time when device memory is becoming incredibly cheap to acquire for both businesses and consumers.

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Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies. He can be reached at Student Loan Ninja.