December 5, 2017
According to reports, the well-documented stand-off between Western Digital and Toshiba could finally be coming to a close.
As Market Realist reveals, the legal battle between Toshiba and Western Digital “might be close to a settlement”, with reports indicating that Western Digital may “drop arbitration claims” filed to halt the sale of Toshiba’s chip business to a Bain Capital-led consortium.
As a result of the settlement, Toshiba would supply Western Digital with “advanced chips”, manufactured in the OEM’s new plant, a facility which Western Digital would also invest in. In addition, Western Digital would get an extension on the existing joint venture between the two companies.
This latest development indicates a sharp U-turn in strategy on the part of Toshiba which, in September 2017, had “stated it would work to keep WDC from procuring these advanced new chips” and planned to sell its chips business to the Bain Capital-helmed consortium for a hefty sum of US$18 billion.
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