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Toshiba to sell memory business for $18 billion

Toshiba has finally sealed a deal with the Bain Capital-led group.

@DeekeTweak
Published Wed, Sep 20 2017 8:33 AM CDT   |   Updated Tue, Nov 3 2020 11:54 AM CST

Toshiba will sell its lucrative storage chip memory business to a consortium of buyers led by Bain Capital for $18 billion, Reuters reports.

Toshiba to sell memory business for $18 billion | TweakTown.com

After long weeks of negotiations, Japanese chip-maker Toshiba has agreed to sell its Toshiba Memory Corporation storage company for 2 trillion yen, or about $18 billion, down from the original 2.4 trillion offer. Toshiba has agreed to sell the business to a group of buyers led by Bain Capital instead of the Western Digital helmed consortium. The Bain group includes other companies such as SK Hynix, Dell, and others. Tech titan Apple also contributed to the investment, likely in an effort to get as close as possible to the chip supply chain.

The chip business is responsible for Toshiba's wide array of memory solutions, which include its latest high-efficient 3D NAND technology which has high use cases in modern smartphones, servers, and other major devices. Toshiba is the world's number 2 supplier of flash memory and remains a significant force in today's electronics market.

This major announcement comes weeks after Toshiba missed its internal deadline to make a sales decision. The company is selling the memory business in an attempt to plug a massive revenue sinkhole caused by the closure of its Westinghouse nuclear facility in 2016, which incurred an $8.7 billion dollar loss in the company's financials.

NEWS SOURCE:reuters.com

Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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