Group including Apple signs Letter of Intent to purchase Toshiba's memory chip business

Group including Apple signs Letter of Intent to purchase Toshiba's memory chip business
According to today's Wall Street Journal, a consortium that includes Bain Capital and Apple has signed a non-binding letter of intent stating that it plans to purchase Toshiba's memory chip business before the end of this month. Those knowledgeable about the deal say the group, which includes Bain, Apple, Seagate Technology and Dell, are offering more than $18 billion for the business. Another group that was bidding includes Western Digital and private equity firm KKR. Western Digital is actually Toshiba's partner in the NAND memory chip business, and claims to have veto rights to the sale of the division. Toshiba says that this is not true.

Toshiba has put its memory chip business up for sale as a result of huge losses racked up by its U.S. nuclear unit, Westinghouse Electric. That company filed for bankruptcy earlier this year. As a result of Westinghouse's problems, Toshiba needs to raise a massive amount of money, which it will do by selling the profitable memory chip business. Without raising the necessary funds, Toshiba's stockholder equity would be in the red and the company's stock could be de-listed from the Tokyo Stock Exchange as soon as next March.

Bain and Apple plan on taking the memory chip business private with its purchase, and then selling it to the public in Japan at a future date. For Apple, the purchase could allow it to supply itself with enough flash memory chips for its own devices. While currently Apple relies on Samsung for the vast majority of its memory chips, Apple likes to have more than one source of a component just in case it can't get enough of the part. In addition, it likes to play two suppliers against each other when it comes to pricing. By supplying itself with NAND flash memory chips, Apple can slowly wean itself off its dependence on Samsung for this part. We should know by the end of this month whether Apple will be able to claim a percentage of Toshiba's memory chip business as its own.

source: WSJ

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14 Comments

1. Rocket

Posts: 654; Member since: Feb 24, 2014

If apple buys Toshiba memory business prices will go up.

2. kiko007

Posts: 7493; Member since: Feb 17, 2016

That was kinda inevitable anyhow...

3. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

https://developer.apple.com/documentation/localauthentication/lapolicy/1622327-deviceownerauthenticationwithbio Face ID is disabled after two unsuccessful attempts, requiring the user to enter the device passcode in order to be re-enabled, as described in Apple's developer beta documentation, implying that Federighi was unable to authenticate the first device.

4. Subie

Posts: 2363; Member since: Aug 01, 2015

What's the relevance to this article?

5. kiko007

Posts: 7493; Member since: Feb 17, 2016

Nothing at all, he's simply trolling for attention. Treat him like an overworked dad disappointed in his Arts Major son... ignore him.

6. tedkord

Posts: 17356; Member since: Jun 17, 2009

Maybe. Twice I've posted in one article, and the comment posted in another. That could have happened here.

8. kiko007

Posts: 7493; Member since: Feb 17, 2016

Huh... Welp, might of just wasted a perfectly good trauma joke... and I'm to happy about it.

11. tedkord

Posts: 17356; Member since: Jun 17, 2009

Mulligan.

7. bur60

Posts: 981; Member since: Jul 07, 2014

Phonearena always stating apple... Toshiba wants to sell itself to SK Hynix. The others are irrelevant.

9. domfonusr

Posts: 1085; Member since: Jan 17, 2014

If the Apple consortium can bid more than the Western Digital consortium, then they may have a shot at this. Apple is threatening Western Digital with ending their status as an Apple supplier if they outbid Apple, and Western Digital claims veto rights to any sale. It will be interesting to see who is the bigger bully. We have already seen some of the opening moves in the Apple vs. Qualcomm debacle, and that could also go either way. Is Apple a big enough bully to beat all the other bullies? If they are, I will be just a bit frightened.

10. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Apple wants everyone to buy their expensive phone while they themselves buy everything on the cheap. However, the joke is on those that paid the high pay but feeling insecure about their purchase so they have a need to leash out. Poor sob!

12. piyath

Posts: 2445; Member since: Mar 23, 2012

18 Billion dollars is cheap to you??? Do you even have enough money to eat 3 times a day to your self??? LOLZZZ

13. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I don't know how much Toshibas is actually worth, do you? Western Digital is willing to pay more than Apple so if you are Toshiba shouldn't you be able to go with WD? Apple Fans are so brainwashed that they don't even have the ability to recognize this. Apple's open threat to Western Digital is a disgraceful behaviour only their sheeple groupie failed to recognise this.

14. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

Indeed apple made threats to Western Digital, if they would proceed with the purchase of Toshiba Memory. apple said we are not buying chips anymore. If i owned WD i would show apple a big fat middle finger! apple is a big disgrace!

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