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Posts tagged to Toshiba

Toshiba NAND business sold: Business must reform or risk becoming a ‘zombie’ company


Now the immediate future of Toshiba has been secured through the $18bn sale of the NAND business, the company must scale down operations to become sufficiently nimble and competitive enough to become prosperous again. With all the large profitable sections sold or bankrupt, Toshiba now mainly exists as a collection of firms which are low-growth and unlikely to yield consistent profits. To solve this problem the company must sell or close the worst performers and use any funds raised to help the company expand again. If this course of action… Read more

Toshiba NAND business sale: Suitable sale is becoming increasingly difficult to achieve


A major problem Toshiba has with the sale of the NAND business is the company as a whole is in such a bad financial condition, potential buyers are in a very strong negotiating position. Toshiba has already sold off other profitable parts of the business in order to cover costs resulting from an accounting scandal in which profits were overstated. Now the second largest NAND business in the world is up for sale, prospective buyers are aware that the Japanese technology giant desperately needs a deal, and soon. Downward pressure… Read more

Toshiba $6.3bn write-down


Originally the board of Toshiba wanted to sell just 19.9% of the semiconductor making business, which was expected to raise $2bn, maybe more. In hanging on to the majority of the business Toshiba would be able to maintain control over the business from which 80% of operating profit is derived. Yet the banks saw the matter differently. Whilst the sale of the majority of the business solves many problems, it creates a fresh set. The more the ‘crown jewels’ of Toshiba are sold off, the harder making a profit becomes…. Read more