US-based tech giants Apple and Amazon are dipping their toes on the bidding war for the acquisition of one of the most notable chip makers in the industry, Toshiba’s chip unit. Hon Hai chairman Terry Gou recently reported about the newcomers in the bidding war; the Taiwanese company has said that they are solidly backed up by both tech giants.
According to news circulated earlier today, both tech kings Apple and Amazon are willing to cooperate with Hon Hai; this means that they will be financially backing them up to secure the bidding war. Hon Hai or most commonly known as Taiwan’s Foxconn Technology Group has also sealed a deal with the Japanese company Sharp Corp which will also be looking to back up their bid.
More Foxconn Data So Far
In an interview, Foxconn’s Terry Gou said that "Of course Apple and Amazon are offering money together, but I cannot comment on how much funds each company is putting on the table," Gou also noted that "We can help banks secure their Toshiba debts. We are not like private equity funds -- if they buy a business, they will resell them for a profit afterward. But we hope to manage Toshiba for life," Both Apple and Amazon representatives were
Hon Hai’s legacy of being around for a couple of years can also be one of the driving reasons why big companies such as Apple and Amazon are
Toshiba’s Current State
The company has been struggling and has been buried on their balance sheet after a flunk in their US nuclear division Westinghouse; Toshiba is looking to sell its memory chip unit so it can settle the lost they have been suffering. Other bidders that are eyeing to purchase the chip unit are as follows; American chipmaker Broadcom, US private equity firm Kohlberg Kravis Roberts, the company’s technological associate the Western Digital and South Korea’s SK Hynix which is being shouldered by Bain Capital.
Foxconn’s shares were up by a total of 25% this year, and the company is also controlling a low-key electronics brand called InFocus and last year, the company has bought Nokia’s feature phone business from Microsoft. While Toshiba’s stock has been dwindling down since December and is sitting on a dreadful 40% decrease since that period.
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