avatarby David Imel2 weeks ago0 comments

Foxconn recently submitted a massive $27 billion bid for Japanese memory manufacturer Toshiba, but sources are saying the company may have to reject this offer due to opposition from both the U.S. and Japanese governments. Chinese ties to Foxconn are reportedly keeping Toshiba from jumping headfirst into the deal as well as a lengthy period of regulatory approval. Toshiba is left considering a number of other offers from manufacturers like America’s Broadcom, who is pitching a much lower $18 billion metric, and Western Digital.

Toshiba is currently facing more than $9 billion in losses from its U.S. nuclear division facing bankruptcy, so any offer more than that is likely looking pretty enticing. Another option for the company is to sell various levels of stock to multiple Japanese companies which would give it just $4.6 billion to work with, but would also allow it to retain control of operations for the future.

Much of the resistance to Foxconn is related to its recent acquisition of Sharp in 2016, who also supplied parts to Apple. Narrowing down suppliers of one company to two or even one entities can be a pretty dangerous practice, as it means that that supplier has almost total control of what components cost in the market.

Who do you think will ultimately end up purchasing the company? Will they take the $4.6 billion deal and retain control while trying to dig their way out of debt?

Let us know your thoughts below.