The board of directors of Toshiba yesterday announced that they had unanimously agreed to sell the microchip business in a deal that might give the troubled tech giant what it needs to survive. The lucrative microchip business is said to have been sold to Japanese and American businesses. However, the Japanese giant announced in a statement that the details of the deal are yet to be finalized. This means that the bid is still open to more changes like it has been experienced in the past. In the past bids, confusion, acrimony and reversals have been common. However, a close source who sought anonymity because the details have not been released in public by Toshiba said that the tech giant was not in negotiation with another firm about a possible sale. However, according to preliminary reports, Toshiba has expressed its desire to maintain some control over the firm. This makes it unclear about the amount that will be acquired by the outside investors. At the same time, the deal is estimated to be worth $18 billion or two trillion yen. It has also been revealed that the ownership will be shared between an American buyout firm known as Bain Capital and other two entities that are under the Japanese government. These entities include the Development Bank of Japan and Innovation Network Corporation.
However, the person close to the sale said that there were other buyers who had negotiated to buy small stakes in the firm. They include SKHynix which is a company from South Korea specializing in semiconductors and Apple from the US. The entity that was being sold is referred to as Toshiba Memory Corporation and specializes in the manufacture of flash memory chips that find their use in many digital devices including smartphones. According to sources, Toshiba desperately needed this money to cover holes that had existed in its balance sheet for a while. This comes from loses that the Japanese giant made while investing in nuclear energy in the United States. To maintain some control over the chip business, Toshiba said that it would form a company with the two Japanese government entities and Bain. The new company will then be involved in the chip business. However, many analysts say that the Japanese company will retain minority stakes in the new business. However, things are not as straightforward as they seem as there are problems. For instance, there is a lawsuit against the sale that must be resolved first.