So there are some news:

https://www.olympus-global.com/ir/data/announcement/2020/contents/ir00018.pdf

Strangely enough Olympus will retain 5 % of the company shares after the sale to JIP in January 2021.

Signing of Definitive Agreement for Divestiture of Imaging Business

Olympus Corporation ("Olympus") hereby announces that its Board of Directors has resolved today to (i) succeed Olympus’ imaging business through an absorption-type split ("Company Split") to a wholly-owned subsidiary ("New Imaging Company")to be newly established by Olympus; and (ii) transfer 95% shares of the New Imaging Company ("Share Transfer"; and the Company Split and the Share Transfer, collectively, “Transaction”) to OJ Holdings, Ltd., a special purpose company established by Japan Industrial Partners, Inc. ("JIP").

The Share Transfer is subject to certain conditions including JIP’s obtainment of approval(s) from relevant authorities pursuant to the competition laws of Japan and other relevant jurisdictions.

1. Background and Purpose of the Transaction

As announced in the "Signing of Memorandum of Understanding for Divestiture of Imaging Business" dated June 24, 2020, since commencing manufacture and sales of cameras using the photographic lens "Zuiko" in 1936, Olympus has operated its imaging business based on innovative technology and unique product development capabilities, aiming to enrich the lifestyle of the people in the world. However, in recent years the market has shrunk rapidly due to the rise of smartphones causing a difficult situation for the digital camera market. Olympus has improved its cost structure by restructuring its manufacturing bases and focusing on highvalue-added interchangeable lenses, aiming to rectify the earning structure. Despite all such efforts, the imaging business recorded operating losses for three consecutive fiscal years up to the fiscal year ended March 2020.

Under such circumstances, Olympus consider that, by carving-out the imaging business and operating the business under JIP, its business structure may become more compact, efficient, and agile, and it is the most appropriate way to realize self-sustainable and continuous growth. As such, the Memorandum of Understanding was entered into between JIP on June 24, 2020, and based on subsequent negotiation, a legally-binding definitive agreement has been executed as of today.

The scope of the Transaction is the global imaging business. After the carve-out and transfer of the imaging business to JIP, the New Imaging Company will maintain its restructured R&D and manufacturing structure and continue to provide high-quality, highly reliable products. The New Imaging Company will start operations from January 1, 2021 and continue to provide customer support for the Olympus products as well.

Olympus staff made redundant in UK today, some already gone in France and more to come across Europe in coming weeks. Around 2/3 of workforce lost their roles in UK today.

From 43rumors.

From my source can confirm that company is in total demise mode.

Mid-level Olympus employees in the imaging business, which includes digital cameras, also have a ray of hope that the parent company will change. They are hoping that, after the carve-out, they will be able to allocate sufficient resources under JIP. On the other hand, it has not been decided whether all the personnel in the imaging business will be transferred.

For example, Hiroyuki Sasa, former president of Olympus, used to say, “The technology of the imaging business can be used for our mainstay endoscope technology”. In fact, it is reported that Olympus transferred personnel from the imaging business to other divisions, such as the administrative department at headquarters several years ago. The purpose of this move was not only to improve the loss-making nature of the imaging business, but also to transfer the know-how of the imaging business to the medical equipment business.

In other words, the imaging business is an important part of Olympus’ medical equipment business. In fact, JIP is also concerned that it will not be able to acquire excellent human resources along with the acquisition. “One of the problems with carve-outs from large companies is that R&D personnel do not follow the carve-out destination. We are negotiating with Olympus on this matter,” said Mr. Inagaki.

On the other hand, an analyst familiar with the digital camera industry is sceptical about the carve-out. “Similar to VAIO, sales of 20 billion yen and operating profit of 700-800 million yen can be achieved by cutting costs even if it”s not JPI,”. He added: “The problem is expanding business and entering new fields. The digital camera market can only survive with products for professionals and high amateurs. In this environment, it is unlikely that professional and amateur photographers will actively purchase micro four thirds cameras. In addition, if they cut costs to achieve the same level of performance as VAIO, they won’t be able to maintain the production scale needed for surveillance cameras and other products for business use” he said.

In fact, some believe that Panasonic, which has adopted the Micro Four Thirds format, has failed to enough differentiate itself from smartphones and has therefore begun to focus on full-size cameras. Although it may be possible to break the ties of large companies, it is extremely difficult to grow the imaging business of Olympus into a business that can grow its core activities and achieve profit growth every year like VAIO.

Will JIP’s carve-out of the Olympus imaging business repeat the success of VAIO? All eyes will be on JIP’s skills.

https://www.43rumors.com/jip-press-text-translated-by-mistral/

I'm hearing of some good things still coming down the pipe.

JB

@EspenB

It is big issue with their plan.

HiSilicon designed and produced around 20-30% of all chipsets for industrial and security cameras. It is gone.

SMIC that will be defeated in coming weeks also hods around 20-25%.

Lot of the leading cameras manufacturers are falling under sanctions or already under them.

May be China will be able to try to route all existing 45-65nm capacity making basic router LSI and street cameras LSI. But not more in coming year or two.

New Olympus buyers false assurances

JIP will not sell remains of Olympus after destruction

They said there have been no cases of bankruptcy in their past 30 investments. They are confident they can regenerate the business and definitely do NOT plan to sell the business to the best bidders. The hope is to achieve a profitability in the first year. After that, instead of selling it to external companies, they will search for a way to revive it under JIP company.

This self-confidence is underpinned by the success of the PC “VAIO” business. It returned to profitability in the fiscal year ended May 2016, and has continued to increase profits every fiscal year. EMS (manufacturing outsourcing) business for robots has also started, and the core of the business is increasing.

Sony VAIO is clearly not the success case. Brand is literally destroyed and Taiwan notebooks with nice logos is being sold with added huge margins.

JIP will maintain Olympus brand and not withdraw from overseas markets:

The Olympus brand will be maintained for the time being, and the maintenance of the sold products will be continued. Unlike the “VAIO”, there is no plan to ​​withdraw from the overseas market, and they will continue to sell overseas such as in Europe, which is their “main market”. They also plan to keep using the new fab in Vietnam.

Main point here is to avoid any conflicts that will arise from lack of service, so nice little lie can help.

JIP plan to regenerate the MFT business:

Key to success is “focusing on unique features and technologies. They plan to shift from consumer-oriented market to the business-oriented market where “its features can be maximized”. JIP also plans to focus on the “video business” which so far Olympus hasn’t really focused on: “we are considering various markets such as consumer products specialized for video and business such as surveillance cameras”

JIP lacks people, expertise or even funds to do even generic 1-2 designs on existing base, I am not talking about LSI design that is required for each of such products.

If burning can be called regeneration - it is exactly this.

The issue with human resources:

It has not been decided whether all human resources in the video business will move to the new company. JIP is negotiating with Olympus to acquire talent along with acquisition

Olympus already lost lot of people and around 90% of all leading developers are either already found new job or search actively for one.

https://toyokeizai.net/articles/-/374348?page=3

A source told me that actually Olympus plans to announce one more camera this fall. He didn’t tell me what this might be. Let’s hope the JIP partnership didn’t change the roadmap.

It'll be real fun.

"I have recently been told by a Olympus representative that JIP is most likely to continue developing the PRO segment of their MFT system, and possibly there will be a re-branding without the Olympus name. It is also likely that they will discontinue the volume cameras, such as the E-PL series. Non of this is officially confirmed, but it is said that they are working on a press release that will be released within approximately one month from today."

Strong rumor from China

At least two Chinese firms that already offer lenses for mirrorless and DSLR cameras are now working tight to get most of Olympus lens designers and engineers.

Average offered salary is 1.7-2x of present Olympus one (due to situation at Olympus it was among lowest in the Japan industry). But offers can go as high as 3x salary. Of course it also includes free apartments and free transfer, plus free language teachers for all family.

Firms specially underlined that it is human resources that are valuable as equipment and computer software that they used are mostly subpar to much newer Chinese factories.

Do you think that your product lineup will get smaller?

We will focus on the high-end market more than ever. High-end cameras and lenses in the ILC lineup. There may be some changes in the product lineup for strategic reasons, but we don’t plan simply to reduce the number of products.

https://www.dpreview.com/interviews/1110652776/olympus-interview-we-are-extremely-grateful-to-all-of-our-customers-for-their-loyalty-and-support

@Vitaliy_Kiselev

Also, seems a bit far fetched to believe that possibly continued production will not have a associated name besides OMD and ZUIKO?

The ship will be an u-boat long before january 2021.