[HN Gopher] Toshiba to delist from Japanese stock exchange
       ___________________________________________________________________
        
       Toshiba to delist from Japanese stock exchange
        
       Author : anigbrowl
       Score  : 58 points
       Date   : 2023-10-12 16:48 UTC (4 hours ago)
        
 (HTM) web link (english.kyodonews.net)
 (TXT) w3m dump (english.kyodonews.net)
        
       | chollida1 wrote:
       | So this is somewhat interesting based on how Toshiba got here.
       | 
       | At one point they were a pretty well respected company and then
       | they ran into the same issue that most conglomerates run into in
       | that different parts of their business get different multiples
       | and that often leads investors to give them the multiple of the
       | lowest yielding portion of their business.
       | 
       | To help boost their stock price in the early 2010's they started
       | to fudge their books and were caught and fined in the mid 2010's,
       | I think it was over $6B in fines to indicate just how far they
       | went to fudge their numbers.
       | 
       | After this they had alot of interest from activist investors as
       | nothing attracts an activist investor like an old bumbling
       | conglomerate. Its literally the typical hedge fund
       | target/playbook.
       | 
       | - old company that has lost its way
       | 
       | - scandals affecting the companies books
       | 
       | - conglomerate that can be broken up and sold for pieces to
       | unlock higher multiples in the market.
       | 
       | Now, instead of the activist hedge fund treatment, it will get
       | the private equity treatment, where they'll break the company up
       | but keep the name and spin the company back out in 5-10 years
       | once they've sold off the divisions that can quickly make the
       | investors money.
       | 
       | in the end the market determined that the activists were right
       | and the company was way to big and diversified to be effective.
       | 
       | Sadly instead of the public benefiting from this breakup due to a
       | bump in the share price and dividends being paid out from the
       | breakup it will be a consortium of banks and other companies that
       | benefit from this.
        
         | ska wrote:
         | the breaking up has been going on for a while, e.g. Canon
         | bought their medical line of business back in 2016.
        
           | stg22 wrote:
           | In 2006, Toshiba bought Westinghouse Electric Company in one
           | of the worst deals in history.
           | 
           | Westinghouse negotiated fixed price contracts to construct
           | nuclear reactors and Toshiba provided financial guarantees,
           | so they ended up on the hook for massive cost over-runs. In
           | 2017 alone, Westinghouse reported an annual loss of $9bn. and
           | declared themselves bankrupt.
           | 
           | Toshiba had to sell a load of businesses over the years to
           | escape the Westinghouse black hole and repair their balance
           | sheet.
        
             | christophilus wrote:
             | Didn't Brookfield buy Westinghouse? How do they plan on
             | avoiding those same risks? Brookfield doesn't strike me as
             | the kind of company to repeat that sort of error.
        
               | Tsarbomb wrote:
               | Westinghouse is owned by Brookfield Renewable Partners
               | and Cameco.
               | 
               | Cameco is the second largest uranium producer in the
               | world. Brookfield Renewable Partners owns and operates a
               | lot of power generation. Both are Canadian where there is
               | a huge pool of both power generation and specifically
               | nuclear power generation talent and experience. As an
               | example until 2016 Canada had the largest operator
               | nuclear power facility in the world, several provinces
               | are currently in the planning phases of SMRs, and Canada
               | will be financing CANDU reactors in Romania.
               | 
               | It's safe to say they see some sort of advantageous
               | vertical integration of the supply chain, as well as
               | believing regulatory and economic outlooks being good.
        
         | kylebenzle wrote:
         | I don't think you'll find any of this info online but TOSHIBA
         | is the reason the US Navy has active personnel on ALL Japanese
         | Self Defense Forces ships. ALWAYS, the US Navy has at least 1-2
         | people stationed on JSDF ships (I did 2 tours on a japanese
         | boat).
         | 
         | This is WILD because it came up as part of an agreement 20
         | years ago because it was discovered that Toshiba had put a
         | backdoor on all Toshiba hard drives. Basically the US told
         | Japan, either we release what Toshiba did, or you put our Navy
         | guys (I only know navy but probably other branches too) on your
         | boats.
         | 
         | Japan agreed, the scandel went away and Toshiba was left to rot
         | as a zombie company.
         | 
         | Maybe your financial reason got them where they are today, but
         | Toshiba was effectivly dead 20 years ago when they screwed over
         | the US and Japanese governments at the same time, crazy that
         | Japan let them zombify for 20 years.
        
           | quesera wrote:
           | How can a discerning reader tell the difference between this
           | story and an unsubstantiated rumor?
           | 
           | "backdoor on all Toshiba hard drives" is an enormous security
           | concern for all world citizens.
        
             | lokar wrote:
             | What would a HDD "back door" even consist of 20+ years ago?
        
               | kylebenzle wrote:
               | No idea, I only got told the story by the commander while
               | we were drinking in our state rooms in the JSDF ship,
               | maybe he was lying?
               | 
               | Importantly though they said it was sending data back,
               | THAT was the issue because the navy had used their
               | drives, so basically stealing us gov data.
        
               | FirmwareBurner wrote:
               | _> No idea, I only got told the story by the commander
               | while we were drinking in our state rooms in the JSDF
               | ship, maybe he was lying?_
               | 
               | Military staff would never lie and are also known to be
               | very tech savvy. Story seems legit to me.
        
             | kylebenzle wrote:
             | You can't, I guess that's the nature of dissiminating top
             | secret information on the Internet, don't believe me, or
             | use it as a jumping off point and look it up, I don't care,
             | just telling you want happened. I could give a few more
             | details but that's the interesting part
        
             | 0xbadcafebee wrote:
             | I think they mean the machines' OS was backdoored, not the
             | hard drive itself. Happened with Lenovo multiple times,
             | could have happened with other manufacturers.
             | 
             | https://thehackernews.com/2013/07/Lenovo-banned-
             | Intelligence... https://thehackernews.com/search/label/Leno
             | vo%20Backdoor%20M...
             | 
             | But also keep in mind the NSA has been backdooring and
             | infiltrating both domestic and foreign commercial entities
             | & critical infrastructure for decades. We can't pretend
             | this is shocking.
        
           | FirmwareBurner wrote:
           | _> it was discovered that Toshiba had put a backdoor on all
           | Toshiba hard drives_
           | 
           | How can we know this is true, and how would a HDD backdoor
           | even work? What's the exploit here?
           | 
           | Does the firmware on the HDD controller magically connect to
           | the internet via the SATA cable and through the host
           | controller to siphon your data to the Japanese alphabet
           | agencies?
           | 
           | Sounds pretty absurd.
        
             | hammock wrote:
             | Hard drives have firmware and hidden partitions. An
             | attacker with access to these could manipulate them to
             | create a backdoor which allows remote control, data access,
             | etc.
        
               | FirmwareBurner wrote:
               | _> HDDs have firmware._
               | 
               | That's ... what I just said.
               | 
               |  _> An attacker with access to the firmware could
               | manipulate it to create a backdoor._
               | 
               | You can create backdoors for every device, not just HDDs,
               | why should Toshiba be liable here? iPhones and Androids
               | have tonnes of exploits written for them? Are we
               | extorting them too for SW bugs that lead to
               | vulnerabilities?
               | 
               |  _> This might involve modifying the firmware to allow
               | remote control, unauthorized data access, or other
               | malicious actions_
               | 
               | Remote access how? Can I talk to the exploited firmware
               | of your HDD via the internet while magically bypassing
               | firewalls and the OS security? Is that a technically
               | feasible thing or are you just speculating without
               | background knowledge?
               | 
               | Sounds like first you'd need to compromise the firewalls,
               | OS, SATA controller and network layers to let outsiders
               | talk to the compromised HDD firmware via the internet and
               | if the attacker already has that kind of remote access to
               | your system, then you're already screwed and compromised
               | and the HDD firmware is the least of your worries.
               | 
               | Even if remote HDD firmware vulnerabilities are not
               | technically feasible and only work if you get your hands
               | on the HDD, in cyber-secvurity world, if your
               | HDD/laptop/PC is in the hands of the attacker, then you
               | can consider it already compromised regardless of HDD
               | firmware security.
               | 
               | It all sounds like a nothing burgher or pure FUD.
        
               | formerly_proven wrote:
               | Some SSDs understand partition tables and file systems to
               | trim/discard their flash "automagically", so it would be
               | possible for firmware to manipulate e.g. OS components
               | stored on the disk to introduce a backdoor. The hard
               | drive has plenty of storage space for that.
        
               | FirmwareBurner wrote:
               | 1. We're talking about HDDs from 20 years ago, not SSDs.
               | Different beasts entirely.
               | 
               | 2. That still means you need physical acces to the
               | victim's system to exploit, nothing that can be exploited
               | remotely.
        
               | charcircuit wrote:
               | >why should Toshiba be liable here?
               | 
               | If Toshiba created a malicous firmware with a backdoor
               | they would be liable for the backdoor.
        
               | FirmwareBurner wrote:
               | _> If Toshiba created a malicous firmware with a backdoor
               | they would be liable for the backdoor._
               | 
               | That's a big IF. Where's the proof for that though? Or is
               | it like the imaginary WMDs in Irak?
               | 
               | Backdoors are usually cleverly disguised software bugs
               | specifically to give you deniability if you ever get
               | caught. It's not like the Jupanese agencies would put
               | their names and signatures in the backdoor's firmare
               | image.
        
             | kylebenzle wrote:
             | They said it "sent data" back to Japan, that was the issue,
             | the basically got caught stealing us gov data, and this was
             | 20 years ago. So I have no idea.
        
           | fidotron wrote:
           | Toshiba-US relations have a far more serious foundational
           | problem than that: https://en.wikipedia.org/wiki/Toshiba-
           | Kongsberg_scandal
        
           | AnonymousPlanet wrote:
           | Do you have any sources for your claim that there are always
           | US Navy personnel on JSDF ships?
        
       | esafak wrote:
       | tl,dr:
       | 
       | > The bid was intended to allow Toshiba to sever ties with
       | overseas activist shareholders, who it says were only seeking
       | short-term returns.
        
         | malfist wrote:
         | Sure that's their stated reasoning. But in terms of seeking
         | short term gain and ignoring long term costs, I don't think
         | there's much, if an difference between activist investors and
         | private equity
        
       | systems wrote:
       | my first laptop was a toshiba, they used to be one of the best
       | laptop makers at some point
        
         | racl101 wrote:
         | Same here.
        
       | pengaru wrote:
       | https://www.nytimes.com/2017/02/14/business/toshiba-chairman...
       | 
       | http://large.stanford.edu/courses/2017/ph241/tarhuni1/
        
       | jeffbee wrote:
       | > Toshiba, one of Japan's leading companies, was founded in 1875.
       | It started as an electric appliance maker...
       | 
       | This combination of facts seems extremely unlikely.
        
         | o11c wrote:
         | Clicking through a few Wikipedia articles, we get [1]:
         | 
         | > Tanaka Seisakusho (Tian Zhong Zhi Zuo Suo , Tanaka
         | Engineering Works) was the first company established by Tanaka
         | Hisashige, one of the most original and productive inventor-
         | engineers during the Tokugawa / Edo period. Established in July
         | 1875, it was the first Japanese company to manufacture
         | telegraph equipment. It also manufactured switches, and
         | miscellaneous electrical and communications equipment.
         | 
         | [1]: https://en.wikipedia.org/wiki/Tanaka_Seisakusho
        
         | chrisco255 wrote:
         | I dunno a lot of Japanese companies have old history like that.
         | Nintendo is also from the 1800s, and started in playing cards.
        
           | resoluteteeth wrote:
           | I think they mean that if it was founded in 1875 it couldn't
           | have originally been making electrical appliances but that
           | appears to be incorrect because according to Japanese
           | Wikipedia the origin of the company was hisashige Tanaka
           | establishing a telegraph equipment factory in Ginza in 1875
        
         | charcircuit wrote:
         | In Japan the PC market evolved out of the electric appliance
         | market.
        
       | ChrisArchitect wrote:
       | September news. Not even clear if "Thursday" is today or from
       | back then. Weird.
       | 
       | Something new here or are you just wasting our time?
        
         | ChrisArchitect wrote:
         | https://news.ycombinator.com/item?id=37593719
         | 
         | https://news.ycombinator.com/item?id=37597214
         | 
         | https://news.ycombinator.com/item?id=37606935
        
         | anigbrowl wrote:
         | The date of the market delisting, which was not announced
         | previously.
        
       | 1-6 wrote:
       | Not all companies should go public. Lego is a classic example.
        
       ___________________________________________________________________
       (page generated 2023-10-12 21:00 UTC)