Tuesday, September 23, 2008

Is this the reason Samsung wants to take over Sandisk?

The Los Angeles Times has an interesting article on a deal between memory chip maker Sandisk and major players in the music industry to boost sales of music in retail stores as CD purchases continue to decline.
The four major record labels plan to start selling their music on mini flash memory cards that can be loaded into some mobile phones, digital music players and car stereos.

Made by SanDisk Corp., the slotMusic cards are expected to go on sale before the holiday season at Best Buy Co. and Wal-Mart Stores Inc. Neither SanDisk nor the record labels would disclose the price of the cards, other than to say they would be comparable to CDs.
Could this be a reason Samsung is so keen to buy out Sandisk (putting them firmly in the music industry like their rival Sony). [By the way, I think WangKon936 and his financial insights are a great addition to the Marmot's pantheon of contributors, unlike a past writer who was long on ambition and short on erudition.]

UPDATE (Tuesday, October 21, 2008):
Samsung Electronics Wednesday (Korea time) that it has withdrawn its bid to acquire SanDisk, citing "growing uncertainties" in SanDisk's business.

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