Saturday January 28, 2017

Toshiba To Sell Off Part Of Its Memory Business

The bigger news to me is that Toshiba built nuclear power plants ( or is that common knowledge? ), but the company has decided to spin off and sell part of its flash memory business due to a poorly thought out acquisition within its US nuclear division. This follows that sort-of-recent accounting scandal, where the company had to plan for massive layoffs after they discovered they would be losing $4.5 billion. But for me, Toshiba’s biggest failure will always be HD-DVD (which I still have a stack lying somewhere, collecting dust). Despite that, I am still cool with the company thanks to their low-cost, high-storage hard drives ( X300, etc. )آ—I can only hope that division sticks around.

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Toshiba plans to split off the memory business (including the SSD business, but excluding the image sensor business) by March 31. The company has yet to decide which assets and liabilities will be split off, though it plans to sell less than 20 percent of the business, Reuters reports. Toshiba's NAND flash memory business makes up most of Toshiba's operating profit and is the world's second largest, behind Samsung. The company needs cash, it explained, to make up for losses related to an acquisition within its US nuclear division that "could reach several billion US dollars." "Splitting off the Memory business into a single business entity will afford it greater flexibility in rapid decision-making, and enhance financing options, which will lead to further growth of the business and maximize the corporate value of Toshiba Group," the company argued.

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