HTC stock suspension adds fuel to Google acquisition rumors
HTC is to suspend investing of its stock on the TWSE tomorrow, in advance of what it claims will be the release of “material information” pertaining to its small business. The news was noted earlier by the FT.
The go has spiked speculation about a opportunity sale of HTC’s mobile division, with the Taiwanese product maker having difficulties for several years to consider to flip all over its fortunes in the fiercely competitive smartphone current market.
In the latest several years loss-building quarters have become the norm for HTC, which posted its 1st at any time loss building quarter in Q3 2013. And even with administration improvements, portfolio trimming and even pushing into a new item category (VR, by means of a partnership with game titles publisher Valve) it has been unable to pull its small business out of a lengthy slide.
Media reviews in Asia have not long ago joined Google’s parent corporation Alphabet with a attainable acquisition of HTC’s mobile small business. And a be aware on HTC’s trader website references speculation in the China Instances that “HTC may well announce the sale to Google” — going on to specify its “countermeasure” to this report is to point out: “HTC does not remark on current market rumor or speculation”.
If Google is without a doubt set to pick up HTC’s smartphone division it would not be the 1st time it is swooped in to consider to salvage 1 of its Android OEMs. The corporation acquired Motorola Mobility in 2011, shelling out $twelve.5BN on the order. Then in 2014 it sold the division to Lenovo for $2.91BN — holding on to “the large majority” of Motorola’s patent portfolio.
Smartphone leaker Evan Blass has tweeted that he’s been despatched a duplicate of an interior HTC invite for personnel to a town hall conference tomorrow — which seemingly contains “Google acquisition” as 1 of the topics.
Blass claims the identical resource even further statements the deal that the two providers have finalized will see Google get “certain components engineering assets” from HTC, when the latter retains its brand — and will focus on VR and the Vive.
We’ve reached out to Google for remark and will update this submit with any response.