It appears that Japan's biggest electronics conglomerate, Hitachi Ltd., is considering selling a stake in its hard disk drive arm to a strategic investor.
Due to competitive prices on hard disks, Hitachi has not posted a profit in its hard disk drive business ever since its acquisition from IBM in 2002 for $2 billion.
According to a report from Reuters:
Hitachi may seek a fund to buy an equity stake in the hard disk drive business and then work with the fund to help revive it, one financial industry source said.
But it was not immediately clear if Hitachi might also look to unload the entire business.
Another report from Reuters notes that "Hitachi Ltd.'s hard disk drive business is likely to post a bigger loss than a company forecast for the current business year, hit by sharp price falls earlier this year."
Apparently, the above news sent shares of Hitachi up more than 8 percent at one point.
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Paul Mah is a writer and blogger who lives in Singapore, where he has worked for a number of years in various capacities within the IT industry. Paul enjoys tinkering with tech gadgets, smartphones, and networking devices.