The end of an era: Toshiba will be divided into three different companies

Toshiba is divided into three different companies. (photo: Black Market)

A century and a half of history has come to an end. Toshiba, one of the most iconic brands of traditional Japanese technology, has surprised millions of people on social networks around the world after announce its division into three different companies after almost 150 years. The board made the decision after years of speculation, and now one of the deals could be a well-known brand of PC hard drives.

All three operations have specific semiconductor plans and could merge with Western Digital for a multi-million dollar deal. Toshiba is one of the few flagship companies in Japan‘s former high-tech industry. The plans that have already been confirmed began in 2015, when the company went through a long transformation process after the corporate problems of the brand.

The main objective of Toshiba’s division into three different brands is to add value and encourage shareholders and partners. Some of the main shareholders in this decision are Elliott Management, Farallon and Third Point. The decision comes just over a year after the announcement of the definitive closure of the laptop division in August 2020. It should be noted that Toshiba laptops have been manufactured since 1986.

Toshiba could merge with Western Digital for a multi-million dollar deal.  (photo: 1000 brands)
Toshiba could merge with Western Digital for a multi-million dollar deal. (photo: 1000 brands)

Three different companies

– Two core operations: one for nuclear power and infrastructure services

– A separate organization to attach the devices

The remainder will be merged into a separate company that owns 40.6 shares of semiconductor maker Kioxia. As announced, the entire reorganization will be completed in the second half of 2023. The aforementioned third division could become part of Western Digital as indicated, in a transaction that would amount to 20,000 million euros.

“The separation will create two distinctive companies with unique business characteristics that will lead their respective industries. Both companies will be much better positioned to capitalize on their different market positions, priorities and growth drivers to deliver sustainable profitable growth and increased shareholder value. ” the company explained.

Satoshi Tsunakawa.  (photo: The Japan Times)
Satoshi Tsunakawa. (photo: The Japan Times) (Yuya Shino /)

In addition, Toshiba intends to monetize Kioxia shares by maximizing shareholder value by returning full net earnings to shareholders. as soon as possible, as long as this does not interfere with the proper implementation of the planned division.

“During our more than 140 years of history, Toshiba has constantly evolved to stay ahead. Today’s announcement is no different. To improve our competitive positioning, each company now needs greater flexibility to address its own market opportunities and challenges ”, stated Toshiba Acting President and CEO Satoshi Tsunakawa

“Our board of directors and management team firmly believe that this strategic reorganization is the right step for the sustainable profitable growth of each business and the best way to create additional value for our stakeholders”, added.

In this sense, the Japanese company intends to allocate all capital above the appropriate level, which it estimates at about 100 billion yen over two years, to reimburse shareholders, including share buybacks in years 22 and 23.

Toshiba: beginning of its history

Toshiba’s history begins with the founding of Tanaka seizosho, a company dedicated to the production of telegraph parts established by Hisashige Tanaka in 1876. It would soon be founded Hakunetsusha, a pioneer company in the creation of electric lamps called Tokyo Denki in 1890. After several years of growth, the founders of the two companies decided to merge, creating Tokyo Shibaura Denki in 1939, a company that years later adopted the name of Toshiba.

Tokyo Shibaura Denki, the name prior to what is now known as Toshiba.  (photo: www.tktk.co.jp)
Tokyo Shibaura Denki, the name prior to what is now known as Toshiba. (photo: www.tktk.co.jp)

Dedicated to the production of electrical and electronic equipment, Toshiba quickly began to establish itself in the Asian market. The growth of the company was such that in the 1940s and 1950s it bought numerous engineering and manufacturing companies. Thanks to this investment, the company created its first subsidiaries, such as Toshiba EMI, Toshiba Chemical, Toshiba Electrical Equipment, Toshiba Carrier Corporation and Toshiba Lighting and Technology, among others.

The data: In the eighties he introduced the first MRI system, together with the first laptop in 1986.

First laptop model: Toshiba T1100.  (photo: ABC)
First laptop model: Toshiba T1100. (photo: ABC)

KEEP READING:

Best Game of the Year 2021: These are the 13 Sony video games that will compete for the award

So you can share a fake location on WhatsApp if you have an Android device

The 5 tricks to avoid any spam on Telegram

Source-www.infobae.com