Toshiba corp which is a large company with businesses ranging from laptops to nuclear power, is set to sell its image sensor business to Sony Corp which is already a big player in the image sensor segment. The deal is said to be around $20 billion yen which is approximately $164.68 million. This sell off by Toshiba is said to be due to a restructuring plan being laid out by the new CEO of the company Masashi Muromachi.
The restructuring plan seems to be due to the revelations this year, which say that the company overstated earning by $1.3 billion going back to fiscal 2008/09. The image sensor business is a part of Toshiba’s LSI semiconductor business, the company plans to sell the manufacturing plant in Oita located in southern Japan.
What will happen to the LSI semiconductor business after this deal is sealed is not clear, the company is said to be considering several options for the LSI semiconductor business and its discrete semiconductor business. There have been many deals going on in the Tech business lately with Dell taking over EMC in a massive $63bn deal which is one of the biggest deals ever. Another big takeover was of the memory chip maker Sandisk by Western Digital which was $19 billion. Although this is a comparatively small-scale deal but will be playing an instrumental part in Toshiba’s future, after it overstated $1.3 billion in earnings.
