Toshiba refuses production of televisions

Japanese Corporation Toshiba is in the process of restructuring after bankruptcy of its American subsidiary Westinghouse Electric.

Japanese Corporation Toshiba is negotiating the sale of its once-key units – for the production of TVs and chips.

Among applicants for purchase of the semiconductor business are SK Hynix Inc., Foxconn Technology Group., Western Digital Corp and Micron Technology Inc. Interest in buying business also expressed private equity funds Bain Capital, Silver Lake Partners and KKR & Co.

So far, the best proposal was received from the Taiwanese company Foxconn Technology Group, is willing to pay for the business for the production of microchips almost $27 billion Is much more than Toshiba planning gain: the company intended to receive from the sale of the units at least $9 billion, and the cost of business estimated at $18 billion. However, the Japanese government can ban the sale of Toshiba business Taiwanese company for reasons of national security.

South Korean company Hynix also has offered almost $20 billion, and discussing the possibility of buying jointly with a Japanese investor, hoping that this transaction will be fewer political obstacles.

Meanwhile, Toshiba intends to sell the division on manufacture of TVs, according to Reuters. Finally this issue needs to be resolved before the end of March 2018. In 2016, loss from the sales of TV sets amounted to about $90 million, and revenue fell 42%.

Among the key contenders for the TV business, Toshiba is the Turkish company, Vestel, which is already working with Toshiba owning the exclusive rights to build and sell its TVs in Europe.

The second contender for the purchase of TV units is the Chinese Hisense Group.

It is noteworthy that Japan’s first color TV in 1960 released it Toshiba.

Earlier, in 2016, Toshiba sold its business of manufacturing household appliances Chinese Midea Group.

© 2017, paradox. All rights reserved.