Categories: News

Toshiba Sells Majority Stake In Toshiba Memory for $18 Billion

After a long journey, Toshiba has found a buyer for their memory fabs. Earlier in the month, the Japanese conglomerate turned down a Western Digital offer. The company chose instead to pick a deal with Bain Capital. Today, Toshiba revealed that they have made a deal with the Bain Capital consortium. Parting with most of Toshiba Memory, the company will get $18 billion from the sale.

Toshiba Memory had to go even though it was one of the most profitable divisions. The trouble started with an accounting scandal related to Toshiba’s nuclear business. That led to a multi-billion dollar hole in finances. Due to a downgraded credit, selling off something was the best way to raise capital. As the memory division is worth the most, it was the obvious choice for a sale.

Toshiba probably hoped selling a minority stake would be enough. It’s too bad that it didn’t work out that way. The initial minority offer failed to attract enough buyers. That led to later majority stake offers and the current deal.

Japan Keeps Majority Control in Toshiba Memory

Toshiba will keep a 40.2% stake in Toshiba Memory. Hoya Corporation holds another 9.9, keeping 50.1% in Japanese hands. The remainder is made up of Bain Capital, SK Hynix, Apple and Dell. Maybe due to regulatory hurdles, the bid led by partner Western Digital failed. This may be due to Western Digital’s legal action against Toshiba. WD has dragged Toshiba in front of a number of courts and arbitration panels over various accusations.

With the Hoya deal, Toshiba will likely hold onto operational control. It will be interesting to see what changes if any will be happening with the new company. With Toshiba Memory remaining independent, DRAM and NAND competition should hopefully remain strong. The NAND and DRAM market is currently facing a supply crunch. Hopefully, the continued existence of Toshiba Memory will keep prices down.

Samuel Wan

Samuel joined eTeknix in 2015 after becoming engrossed in technology and PC hardware. With his passion for gaming and hardware, tech writing was the logical step to share the latest news with the world. When he’s not busy dreaming about the latest hardware, he enjoys gaming, music, camping and reading.

Disqus Comments Loading...

Recent Posts

NZXT Unveil Masses of New Products – From Coolers, To Cases, To PSUs!

NZXT, a community-driven provider of PC hardware, software, and services has announced the release of…

12 hours ago

AMD Radeon 21.9.2 Drivers Released Getting you Game Ready for Diablo 2

Just in case you're wondering if you're suffering from a strange bout of déjà vu,…

20 hours ago

Intel i9-12900K Appears in Ashes of the Singularity Benchmarks

Although an official release date has still not yet been confirmed, it's understood that Intel…

20 hours ago

EKWB Launch its Quantum Power Bundle Magnitude X360 D-RGB

EK Water Blocks (EKWB) has announced the launch of its brand new EK-Quantum Power Bundle…

20 hours ago

Over 300 OG Xbox Prototype Games (Many Never Released) Get Posted Online!

The original Xbox is fast approaching its 20th birthday, and it certainly represents one of…

20 hours ago

Corsair Launches New M65 RGB ULTRA Gaming Mouse

CORSAIR has announced the newest entries in its world-renowned M65 lineup of high-performance gaming mice:…

20 hours ago