In order to streamline operations and recover losses after its accounting scandal in 2015, Toshiba has been shedding its departments for a few years. In 2015, Sony bought out its sensor business for $155 million, and Bain Capital recently purchased its NAND flash memory department for $18 billion. Today, Toshiba revealed the sale of its TV division to Hisense for amounting $113 million, which fits the trajectory of the company.
Reports noted that Toshiba is possibly making the sale in order to recover from massive losses to the company’s nuclear business. The company had been producing reactors in the United States. However, higher safety regulations in the wake of the Fukushima disaster in 2011 have hindered progress severely. Earlier this year, the US-based nuclear operations of Toshiba filed for bankruptcy.
Toshiba is not the first Japanese tech company to sell off its TV division elsewhere. In March 2016, Foxconn, the Taiwanese electronics manufacturer, formally acquired Sharp for $3.5 billion in a long-protracted deal. However, in 2015, Sharp sold its Mexican factory for a song ($23.7 million) and the rights to produce Televisions under its name in North America to Hisense. (The Foxconn-owned Sharp is now attempting to get those rights back because of the reportedly shoddy televisions of Hisense ruining its good name.)