Toshiba suing Western Digital for $1b dollars, WD fights back

Tech world witnessed a clash between the two memory giants Toshiba and Western Digital over some differences that were taken to the court, with the Japanese company suing WD $1b dollars for the damage it seemingly made.

According to Toshiba, it all goes back to Western Digital interference in Toshiba’s attempt to sell its flash memory division in the joint semiconductor plant between the two companies. Toshiba, which was faced with huge loses over US nuclear plant business was looking forward to sell its division to make up for some of the lost money, but that wasn’t something WD had agreed on.

The shared business between the two gives Western Digital a saying in some decisions, but Toshiba accused the former of “exaggerating” its say in the deal. On the other hand, Western Digital confirmed through an official document that it had attempted to buy TMC division six times, rendering Toshiba’s lawsuit ineffective.

The docs mention four recent bids made by WD in March 22, June 9, June 14 and June 27. The most recent one saw WD involved with private equity house KKR, and two Japanese state-backed funds, INCJ and DBK. Apparently, the US-based company really does want to seal the deal to itself with reports of the bid being worth $2b dollars. It seems that the storage and memory solutions firm wants to keep SK Hynix at bay, refusing any partnership with the Korean company or allowing it to compete.

Toshiba had secured a loan of $6b just weeks ago using its TMC shares deposited in banks as collateral. In WDC’s view, this conduct is not in accordance with the terms of the joint business between the two, giving Western Digital lawyers more beef to present at the court.

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