Rumor Says Samsung Eyeing SanDisk Buyout

SanDisk is huge in the flash memory and USB drive market and owns a slew of patents concerning flash memory tech. Rumors have been circulating that SanDisk may be gobbled up by Samsung. This move would make particularly good sense for Samsung considering it has to pay SanDisk a whopping $351 million each year in royalties for using SanDisk tech in Samsung products.

SanDisk also has a line of MP3 players that do well in the market, though they are far, far beneath the Apple iPod in the sales rankings. Samsung already makes a line of MP3 players, that aren't as popular as SanDisk's offerings. SanDisk issued a press release in the last few weeks declining to comment on any proposed buyout from any firm. It has been my experience in the tech world that rumors commented on as SanDisk did typically means there is more than a little truth to the rumor. Only time will tell, but I for one won't be surprised in the least to see Samsung buys SanDisk. Samsung could simultaneously cut the royalties it pays each year, and deny competitors access to SanDisk technology patents.