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What’s Going On With Toshiba?

You may have noticed that Toshiba is now struggling to stay in business. Its latest strategy to stay afloat is to sell its memory division. The company’s shareholders granted Toshiba permission to make this sale.

Tokyo Stock Exchange

Due to their financial troubles, failure to sell the memory portion of the business to someone else could result in Toshiba being removed from the Tokyo Stock Exchange.

In the last quarter of the 2016 fiscal tax year the market share held by Toshiba was only 17.4%, a disappointingly low number for the company and its shareholders. This puts them far behind Samsung, who has always had larger shares of the market.

To get the highest possible value out of the sale of the memory division, as far back as February, Toshiba was asking bidders to set the memory division of the company to be worth at least 2 trillion yen. This is the USD equivalent of approximately $18.26 billion. A sale of this magnitude would allow Toshiba to recoup recent losses in revenue. When the sale is completed Toshiba will be able to get itself out of debt. The huge debt that the company has accumulated caused them to file for Chapter 11 Bankruptcy.

There are a few potential candidates that have been considering purchasing Toshiba’s memory division, including Apple, Broadcom and Foxconn. The sale of the division is expected to be completed by spring of 2018.