Tuesday, May 09, 2006

Will Kodak and Sandisk Make Sense?

CNN.com had an interesting article a week ago on why Sandisk and Kodak might be good partners.

According tot he network, the deal makes sense since Kodak is still having trouble adjusting in the digital world while Sandisk is looking to expand its flash memory offerings.

"By buying Kodak -- a larger company in terms of revenues, but one whose $8 billion market capitalization is a third smaller than SanDisk's $12 billion -- SanDisk could market digital cameras, photo printers, and other devices that ultimately drive demand for its memory chips. Rather than depending on digital-camera makers to create a market for it, SanDisk could make its own market."

"SanDisk already sells flash memory to cell-phone makers, where Kodak is hoping to market its digital-imaging technology for cameraphones. A merged company could offer cell-phone makers a package deal."

Source: Why a SanDisk-Kodak deal could click

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posted by Henry Marcos at 1:07 AM

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