Toshiba to sell TV, visual solutions unit to Chinese firm Hisense

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toshiba

Japanese electronics major Toshiba Corporation has decided to sell its TV and visual products subsidiary to Chinese company Hisense. According to ABC News, the decision is part of a 12.9 billion yen ($113 million) deal in order to keep Toshiba’s other businesses afloat. The transaction is expected to be completed by or after February 2018 once the deal is approved by regulatory authorities.

The decision to sell off its television and visual products business comes after a disastrous 2017 for the company. Back in February 2017, Toshiba revealed unaudited details of a 390 billion yen ($3.4 billion) corporate-wide loss, mainly caused by its majority-owned US-based Westinghouse nuclear construction subsidiary. To make things worse, Westinghouse filed for Chapter 11 bankruptcy protection on 29 March 2017. Current estimates say that the entire fiasco will cost Toshiba an annual net loss worth $9 billion.

It is also pertinent to note that just two months ago, on September 20, 2017, Toshiba Corporation had also voted to sell its memory-chip business to prospective buyers for $18 billion. Among the companies interested in acquiring that line of business included Apple Inc., Dell Technologies, Kingston Technology Corp. and Seagate Technology PLC. This move has, however, seen resistance from Western Digital who is Toshiba’s joint venture partner in the U.S. Western Digital has filed an arbitration in a San Francisco court to block the sale.

As for Hisense, this company is a large, state-owned company from China headquartered in Qingdao, Shandong province, China. The company sells televisions in its domestic market under different brand names including Combine, Kelon and Ronshen. The company, however, also has a thriving OEM business and makes televisions for a number of other brands. Most notably, in 2015, Hisense acquired the right to sell televisions in the Americas using the brand name of the Japanese firm Sharp. This was after Hisense bought a facility in Mexico – originally owned by Sharp as part of a $23.7 million deal.

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Having spent the better part of the last decade writing about technology, Rahul is among the most experienced tech journalists in India. His writing career began back to 2006 when he started off as a member of the Microsoft PYPC (Protect Your PC) team. At Microsoft, most of his time was spent on creating and updating Microsoft’s Knowledge Base articles. In 2008, thanks to his proclivity for consumer technology, he joined Techtree, then India’s most popular consumer tech website. In his decade-long career, Rahul has contributed to several Indian and International publications including GQ Magazine, Onlygizmos, iPhoneHacks, and The Inquisitr.