Toshiba has agreed to relinquish its PC business to Sharp as the former exits the PC market.
Toshiba has finally put up the white flag for its PC business as it sells it to Sharp.
The deal, worth four billion yen (or about $36 million), also includes the issuance of $1.8 billion in new shares by Sharp to buy back stock from banks.
Toshiba was the first company ever to introduce a notebook PC back in 1985 and were the leaders in the market. But with the birth of smartphones and tablets, PCs went in the backseat. The company used to sell as many as 17 million PCs a year. Now, they sell as little as 1.4 million units last year.
The company also got into more trouble when Westinghouse Electric, its nuclear power division, went bankrupt. Toshiba lost $9 billion.
For consumers however, this is not the end of its PCs. Sharp actually wants to breathe new life to this technology. Now that the former is owned by Foxconn, Sharp can take focus on producing more affordable computers.
The Osaka-based company is so confident with its acquisition of Toshiba that the former issued $1.8 billion in new shares to buy back preferred stock from banks.
Sharp is expected to wrap up the acquisition in October this year.