SanDisk and Toshiba will be joining hands by tweaking the terms of their joint venture. Both companies aren’t exactly humming a happy tune at this point in time with a weak flash memory market, and Toshiba has posted its first loss in seven years. The new terms in the SanDisk-Toshiba manufacturing joint venture will see 20% of the capacity transferred to Toshiba, relieving SanDisk of its lease obligations so that cash flow can improve. This means SanDisk will grab a third of the $890 million deal, while reducing SanDisk’s leases by 28%. Guess when times are hard, tough decisions need to be made and alliances forged, while those who are already working together will need to rethink and reorganize their strategies.
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