On November 14th, it was reported that Hisense was acquiring 95% share of Toshiba Vision Solutions Corporation (TVS) for 12.9 billion Yen, approximately $130 million USD. Toshiba will retain 5% stake.
The acquisition is the latest in a flurry of activity in recent years around M&A, licensing and brand expansion activity. Hisense licensed the Sharp brand for the Americas (excluding Brazil) in 2013, prior to Foxconn Acquiring Sharp. In addition, Toshiba had license it's brand for use in TVs to several different companies in recent years, including Compal, Semp, TCL, Skyworth, Elaraby and recently Vestel for Europe. The acquisition of Toshiba TV by Hisense shakes up these relationships in some interesting ways. The attached analysis details our take on the reasons for the acquisition and some of the possible results.