Embattled Japanese conglomerate Toshiba (TOSBF 2.06, -0.11) has faced a difficult time since an accounting scandal came to light at the end of 2016. The company is still dealing with the fallout and is expected to miss the third deadline for the release of its quarterly report.
Given the recent issues, the company has been looking for ways to salvage its brand by selling off parts of its business. Roughly two weeks ago, the company announced the sale of its medical unit to Canon for $5.90 billion, in an effort to raise cash and streamline its portfolio.
Toshiba is now looking to raise more funds by selling its NAND flash memory business, which has reportedly garnered interest from technology giants like Apple (AAPL 143.86, +0.20), Amazon (AMZN 892.04, +5.50), and Alphabet (GOOGL 853.61, +5.81). A weekend report in Yomiuri indicated that the number of bidders for Toshiba's NAND unit has increased to ten. Furthermore, Nikkei reported that private-equity firm Silver Lake and Broadcom have offered $17.90 billion for Toshiba's chip unit, which is estimated to account for as much as 20.0% of the entire NAND market. Purchasing this unit would allow Apple to make its own memory chips while Alphabet and Amazon could manufacture memory modules for their hosting services.
While the sale of the NAND unit is expected to generate more than enough proceeds to cover Toshiba's $6.30 billion write-down in its nuclear unit, it would leave Toshiba with legacy businesses and limited growth prospects.