A group of investors led by Japan Industrial Partners (JIP) took Toshiba private. In addition to JIP, it also included financial services company Orix, utility company Chubu Electric Power and chipmaker Rohm.

They spent $14 billion to take over Toshiba after a protracted battle with overseas investors that crippled the Japanese maker of batteries, chips, nuclear equipment and defense.

While it's unclear what Toshiba's future will be under its new owners, CEO Taro Shimada, who remains at the helm of the company, is expected to focus on high-margin digital services.

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Toshiba is now in the hands of a consortium of Japanese investors. (Photo: Reuters)

JIP's support for Shimada has derailed plans to tie up with a state-backed fund earlier this year. Some industry insiders believe a split with Toshiba might be a better option.

Damian Thong, head of Japan research at Macquarie Capital Securities, said Toshiba's fate was a combination of bad strategic decisions and bad luck.

Still, he hopes that through divestment, Toshiba's assets and human talent can find new homes where their full potential is unleashed.

The Japanese government will keep a close eye on Toshiba. The company employs about 106,000 people, some of whose activities are considered crucial to national security.

Four JIP directors will join the board, as will one each from investors Orix and Chbu Electric. The new management team also includes a senior adviser from Toshiba's main lender, Sumitomo Mitsui Financial Group.

Toshiba has made a new move, partnering with Rohm to invest $2.7 billion in factories to jointly produce power chips.

Toshiba needs to exit low-margin businesses and develop more aggressive commercial strategies for some of its advanced technologies, according to Ulrike Schaede, a professor of Japanese business at the University of California.

“If management can find a way to get those engineers really involved in disruptive innovation activities, they can emerge as a key player,” Schaede says.

(According to Reuters)

Toshiba accepts to sell itself for $15 billion According to Bloomberg sources, Toshiba has accepted a buyout offer from a domestic alliance, closing a sad chapter in its more than 140-year history.