More tech giants are joining Apple in the consortium bidding to acquire Toshiba’s semiconductor business.
Led by Foxconn, other companies involved in the potential bid include Dell, Google, Microsoft and Cisco. Amazon is also reportedly considering joining.
There’s no word on exactly what these companies will individually invest in the deal, but Foxconn CEO Terry Gou says the combined offer is “very close” to other bids in the process. It is reported as being in the region of $18 billion or more.
If it’s successful, the bid will give Apple and the aforementioned tech companies control of the world’s second-largest vendor of NAND chips. Toshiba is selling its profitable chip business in order to recover from big losses from its nuclear division Westinghouse. Other rival parties bidding in the process reportedly include Broadcom Limited, SK hynix and Western Digital.
Despite the impressive list of U.S. tech giants attached to the potential deal, there’s a good chance the Foxconn-led bid won’t prove successful. The Japanese government says it will block any deal that risks key chip technology being transferred out of the country.
The outcome of the bidding process could be announced as soon as June 15, although don’t be surprised if things get dragged out beyond that.
Source: Reuters
