Toshiba To Split Into Three After Pressure From Activists (bloomberg.com) 18
Toshiba said it would split into three separate companies as part of an effort to improve shareholder value, responding to pressure from activists after years of scandal and mismanagement. From a report: The Tokyo-based company said it will separate core operations into two new publicly traded companies, one for infrastructure services and another for technology devices. The remaining Toshiba business will hold its stakes in memory chip pioneer Kioxia Holdings and Toshiba Tec. The goal is to complete the spinoffs by the second half of fiscal 2023.
The company also plans 100 billion yen ($875 million) for shareholder returns over two years. It plans to monetize its stake in Kioxia and "return net proceeds in full to shareholders. Over our more than 140 year history, Toshiba has constantly evolved to stay ahead of the times," Chief Executive Officer Satoshi Tsunakawa said. "Today's announcement is no different. In order to enhance oure competitive positioning, each business now needs greater flexibility to address its own market opportunities and challenges.
The company also plans 100 billion yen ($875 million) for shareholder returns over two years. It plans to monetize its stake in Kioxia and "return net proceeds in full to shareholders. Over our more than 140 year history, Toshiba has constantly evolved to stay ahead of the times," Chief Executive Officer Satoshi Tsunakawa said. "Today's announcement is no different. In order to enhance oure competitive positioning, each business now needs greater flexibility to address its own market opportunities and challenges.
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Toshiba really screwed over a lot of vendors when they pulled the plug on their telephony business several years ago with basically no warning.
Not a fan.
Something in the water this week (Score:2)
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Johnson&Johnson https://www.snopes.com/ap/2021... [snopes.com]
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Companies often merge to basically better utilize each other resources, cut down on some administrative costs, be able to negotiate better deals, as they can can buy products at a better bulk rate.
Companies often will split, when the advantages break down,
For administrative in general for every 8 people they need 1 manager. so for a company with over 30,000 laborers you will need over 4000 managers, over 500 directors, over 60 VP, 8 executives, If the organization were to split where a less profitable uni
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Re:Something in the water this week (Score:4, Funny)
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/. ;)
Three companies: (Score:3)
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Without dividends, the stock market is just gambling and speculation.
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Technically, it's more to give the shareholders the best return on investment practicable. That can happen without increasing the value of the company if that value already takes into account direct returns like dividends.
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Funny. I get dividends all the time.
Maybe you need to mix up your portfolio? Buy some established companies to go with your startups?
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I thought the whole "pay out dividends" thing was passe.
Do you only invest in tech-bro startups or something?
Hydra (Score:2)
Activists cut head off Hydra, twice for good measure.