Toshiba to buy back memory division shares from group including Apple
Toshiba is buying back shares of its memory division sold to Apple, Dell, Kingston and Seagate, having survived a financial crisis that threatened the entire company.
The key is $11.8 billion in loans secured from Japanese banks as Toshiba Memory works toward going publicly listed, the Wall Street Journal indicated on Monday. The four outside shareholders are expected to earn several hundred million dollars in profits from the buyback, though it's not immediately clear how much Apple's take will be.
The memory unit has actually been one of Toshiba's most successful businesses. Apple is, and will remain, an important client, and likely had a vested interest in keeping it going since the alternative would have been a diminished number of suppliers and higher prices.
Memory prices have been depressed in general during the past few months because of soft demand in both phones and computers. That could change course towards the fall as companies like Apple launch major new products, among them updated iPhones.