New
#3091
Toshiba to sell chip unit for $18bn to plug losses
The question I have is this: So how much more expensive will memory get?
(I ask this, because, the first thing the buyer does after a large acquisition, is to recoup the $$$ they payed out as fast as possible)
Toshiba to sell chip unit for $18bn to plug losses - BBC News21-Sep-17
Toshiba has sold its prized semiconductor business to a group led by US private equity firm Bain Capital in a bid to keep its struggling business afloat.
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Toshiba is the world's number two chipmaker and its Toshiba Memory unit accounts for about a quarter of its revenue.
Bain Capital has partnered with South Korea's SK Hynix Inc and brought in US buyers of Toshiba chips such as Apple and Dell in order to buy the division.
However, there is uncertainty over whether rival bidder Western Digital will walk away from the deal amicably.
The data storage firm - which runs a joint venture with Toshiba in the US - was tipped as favourite to buy the business as recently as this week.
"We are disappointed that Toshiba would take this action despite Western Digital's tireless efforts to reach a resolution that is in the best interests of all stakeholders," the company said in a statement on Wednesday.
It has previously taken legal action against Toshiba, arguing that the deal cannot happen without its consent.