In a significant move that has sparked both interest and debate, Hisense has announced the acquisition of Toshiba's television business for 2.4 billion yuan. This cross-border merger has raised eyebrows in the industry, with some critics labeling it as "foreign garbage." But is this just a hasty judgment?
The deal involves acquiring 95% of Toshiba Image Solutions Inc. (Toshiba TVS), which was completed in November 2017. While the initial transaction cost around 754 million yuan, the total price rose to 2.4 billion yuan when factoring in the company’s liabilities. Despite its financial struggles—Toshiba TVS had negative net assets and declining revenues over the years—the acquisition is seen as a strategic step in Hisense’s global expansion.
Industry observers believe that by acquiring the high-end Toshiba brand, Hisense is aiming to enhance its international image and gain access to advanced technologies, such as OLED. This move also aligns with Hisense’s broader strategy of building a multi-brand global presence, having previously secured Sharp’s North American brand rights.
One key question remains: How will Hisense integrate Toshiba’s operations and leverage its technology? Analysts suggest that the acquisition could help Hisense diversify its display technology portfolio, including ULED and OLED, potentially boosting product innovation and market competitiveness.
Moreover, the 40-year licensing agreement for the Toshiba brand offers long-term value, especially in markets where the brand still holds strong recognition. With Japan’s major appliance companies retreating from the global stage, Hisense is stepping into a vacuum, positioning itself as a key player in the evolving global TV landscape.
Despite recent performance dips, with profit margins shrinking and quarterly earnings declining, analysts remain optimistic about Hisense’s future. The drop in panel prices since mid-2017 is expected to improve gross margins, and growing smart TV adoption could drive revenue growth. Looking ahead, Hisense is projected to see a recovery in 2018, with improved profitability and a stronger global footprint.
This acquisition marks a bold step in Hisense’s journey toward becoming a top-tier global home appliance brand, leveraging both strategic partnerships and technological advancements to solidify its position in the competitive world market.
3.5Mm To Rca Video Cables,Power Audio Cable,3.5Mm Audio Cable,Audio Extension Cable
ShenZhen Puchen Electronics Co., Ltd. , https://www.szpuchen.com