It looks like Western Digital may end up buying Toshiba’s memory chip business after all as Toshiba was unable to solidify a deal with its preferred bidder. Toshiba has been in talks with various potential buyers for months now but a wrench was thrown into the works when WD filed a lawsuit against Toshiba. Western Digital argued that since Toshiba’s memory business is part of a joint venture with WD, it should be able to have a say in who buys Toshiba’s half.
According to Japanese newspaper, Nikkei and brought online via Reuters, Toshiba’s talks with its preferred bidder have stalled after neither party could agree on a payment plan. Toshiba wants cash upfront, whereas the previous bidder wanted to pay in instalments. Now, Toshiba is opening up negotiations with other bidders once again, including Western Digital and Foxconn.
According to the report, Toshiba’s CEO, Satoshi Tsunakawa, told lenders that it will begin focussing on negotiating with Western Digital in an effort to get the sale through as quickly as possible. Apparently, Toshiba is hoping to have a deal in place by the end of the month.
Sources claim that Western Digital is willing to offer two trillion yen, or around $18 billion USD for Toshiba’s memory chip business. Toshiba wants to close its sale before the end of the financial year, so it needs to get things moving as regulatory approvals could end up dragging things out.
KitGuru Says: Toshiba’s memory business sale has been quite the saga. However, if this report is accurate, then it looks like things may come to an end in just a matter of weeks.