Aug 30, 2017

Report: Apple teams with Bain on $18 billion chips bid

Ng Han Guan / AP

Private equity firm Bain Capital has recruited Apple for a last-ditch offer to buy Toshiba Corp.'s semiconductors business, according to Reuters. The bid comes in at around $18.2 billion, with Bain and South Korean chipmaker SK Hynix responsible for over half, Apple providing up to $3.6 billion and Japanese banks funding the remainder. This would slightly trump an existing offer led by Toshiba joint venture partner Western Digital, which also includes KKR.

Timing matters: A big question is if Bain and Apple are just too late with their latest gambit, given the pressure Toshiba is under to get a deal done. Per Reuters:

Failure to clinch a deal in the next few weeks could mean that it may not clear all necessary regulatory approvals by the end of the financial year in March. That would likely lead to Toshiba reporting negative net worth for two years in a row, increasing its chances of being delisted.

How we got here: This auction has had more twists than a Choose Your Own Adventure book read in its entirety:

  • Bain originally entered the process as the partner of Innovation Network Corporation of Japap, which blindsided its original financial sponsor partner, KKR.
  • Apple was first mentioned by Foxconn as a financing partner for its own bid, even though an Apple source says no such deal was ever agreed-upon. Foxconn also claimed to partner with Dell, which is a portfolio company of Silver Lake — which was bidding with Broadcom.
  • KKR then teamed up with Western Digital, which has basically threatened to use legal means to block rival offers.
  • Toshiba then picked INJC/Bain as its preferred bidder, but those talks faded due to INJC's concerns over Western Digital's demands.
  • Reuters now reports that INJC and Development Bank of Japan would both back Bain's bid, but only invest after any legal issues with Western Digital are settled.
  • Got all that?

Go deeper

Coronavirus updates: Market ends worst week since financial crisis

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The stock market ended its worst week since the financial crisis, prompting the Fed to release a statement. Meanwhile, the WHO warned that countries are losing their chance to contain the novel coronavirus and raised its global risk assessment to "very high" Friday.

The big picture: COVID-19 has killed more than 2,860 people and infected more than 84,000 others in over 60 countries and territories outside the epicenter in mainland China. The number of new cases reported outside China now exceed those inside the country.

Go deeperArrowUpdated 3 hours ago - Health

California coronavirus: Latest case has no recent history of international travel

Gov. Gavin Newsom. Photo: Kevork Djansezian/Getty Images

A new case of the novel coronavirus in California was announced on Friday after Gov. Gavin Newsom said Thursday that 33 people had tested positive for the virus, noting the risk to the public remains low.

What's new: An adult woman with chronic health conditions in Santa Clara County who "did not recently travel overseas" or come into contact with anyone known to be ill was confirmed to have contracted the coronavirus on Friday by CDC and California Department of Public Health officials.

Go deeperArrowUpdated 3 hours ago - Health

Big video game conference delayed amid coronavirus concerns

Photo: GDC

Next month's Game Developers Conference in San Francisco became the latest tech event to be cancelled or postponed amid growing concerns over the spread of the novel coronavirus.

The big picture: A growing number of events are being scrapped, including Mobile World Congress and Facebook's F8 developer conference. Some, like the giant SXSW event in Austin, insist they are moving forward.