Samsung  had a few billion laying around, so the company decided today to make an unsolicited offer to purchase Flash memory maker SanDisk [SNDK]. In what was apparently an attempt to broaden its influence as the second-largest chipmaker in the world, and perhaps to expand its growing solid-state memory offerings, Samsung bid $26 in cash for the company, or a total of $5.85 billion. That represents a margin of 93% higher than the company's share price the day on September 4th, a day before Samsung expressed industry. SNDK's share price responded by jumping 56% after hours today.Owning SanDisk would give Samsung a leg up on its main rival in the $15 billion Flash memory market, Toshiba [TOSBF]. SanDisk, a California company, hasn't released official word of its response as of this writing.
While Samsung doesn't need much help developing the technology behind Flash memory devices -- they're one of the biggest Flash makers in the world -- they have few avenues to sell directly to end-users, as most of their componentry goes to OEMs. Owning SanDisk would give them the opportunity to market to camera, smartphone and PMP owners seeking storage solutions for music, photos and other media.