ASUS to Buy Toshiba Notebook Business?

This is firmly in the unverified rumor department, but a Chinese source is claiming that netbook maker ASUS is in talks to buy the notebook division of Toshiba. The source of the rumor is reported to be none other than ASUS CEO Jonney Shih, so there may be some truth in this. ASUS has done well in the netbook business since starting the phenomenon with the Eee PC, but its notebooks have yet to catch on with the buying public.

Toshiba is the No. 5 seller in the world, so ASUS would be looking to move up the ladder with an acquisition. Toshiba sells netbooks as does ASUS, but the lion’s share of Toshiba’s sales involve larger notebooks. A deal would definitely give ASUS some credibility in the notebook business. ASUS has stated it wants to be in the top three notebook vendors by 2011, and a deal with Toshiba would go a long way to reaching that goal.