Reply to post: I've never got my head around Economics...

Toshiba must allow Western Digital access to joint-venture assets


I've never got my head around Economics...

I've followed this saga from the beginning, and there is something I don't quite get...

Toshiba lost a shed load of money when their Westinghouse Electric subsidiary underwent a Total Inability To Support Uranium Power ($8bn I think?)

They want to sell their memory business to recover these losses, and seemingly would like the IP not to leak to the Chinese.

Whoever buys the memory business for enough money for Toshiba to recoup their losses, must be confident of making enough money to both cover the purchase and then make a profit.

If the memory business is so profitable, surely it's better for Toshiba to hang on to it? And if they need money now, can they not get a loan from the national bank (who I think are involved in a consortium to bid for the memory business from Toshiba (to keep it from Chinese hands)), and pay the loan off with profits from the apparently lucrative memory business?

As I said, I've never got my head around economics...

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