Following a series of negotiations, Sony has announced that it’s buying Toshiba’s image sensor business for 19 billion yen — which is about $211 million.
The deal, rumoured in October, will see Sony take over Toshiba’s fabrication plants, equipment and employee contracts in Oita, Japan. In fact, they will be operated by Sony’s recently announced independent image sensor business. The deal will be completed by the end of this financial year.
Image sensors are important for Sony. Last year, for example, it made around 40 per cent of all new image sensors in the market, and every iPhone 6 and Samsung Galaxy S6 that was shipped likely had two Sony image sensors packed inside. The new purchase will see it grow further dominance in the area.
As for Toshiba, it’s no surprise that it’s selling off chunks of its business. Back in June, its CEO, Hisao Tanaka, announced his resignation because the company exaggerated its operating profits by a staggering $2 billion over the course of six years. Now, it’s undergoing a big restructuring to claw back some income.
[Sony]
Image by Zach Dischner under Creative Commons licence.