17Blogs
The end of a long era. Toshiba, one of the most traditional and representative companies of the Japanese technological boom, has just announced its end as a brand after 146 years of being founded. The company has given in to pressure from shareholders on the board of directors and now will be divided into three companies different. One of them will be in charge of manufacturing from semiconductors and could enter into talks to merge with Western Digital.
Toshiba is one of the few symbolic companies of the long-standing high-tech industry in Japan, and also one of the few that pre-date the post-war Japanese miracle.
YOU CAN SEE: Windows 11: how to set up and use multiple monitors on your computer?
The announced plans have stemmed from a lengthy transformation process dating back to the brand’s corporate scandals of 2015, according to Reuters.
The objective of Toshiba’s division into three different brands is primarily to enhance the value for shareholders, partners, and encourage them. Some of the prominent shareholders in this decision were Elliott Management, Farallon and Third Point.
The decision comes just over a year after the definitive closure of the laptop division was announced in August 2020. Toshiba’s laptops have been made since 1985.
Now, the brand will be separated into two central operations and public companies plus one that will attach all the rest. These are:
- One for nuclear power and infrastructure services
- One for devices
The rest will be reunited in a separate company that has a 40.6% stake in the manufacturer. Kioxia, dedicated to semiconductors.
As announced, the entire reorganization will be completed in the second half of 2023. The third division mentioned above (related to Kioxia) could join Western digital according to reports, in a transaction that would amount to 20 billion dollars.
