This post was published 4 years, 1 month ago. Due to the rapidly evolving world of technology, some material it contains may no longer be applicable.
PC giant Asus are considering buying up a struggling HTC whose stock tanked this week, falling over 20% following the company’s revised Q2 earnings outlook which predicted steep losses for June.
No decision has been made yet and it is still fairly probable it won’t go ahead but Asustek Chairman Johnny Shih said last Friday at that they had not ruled out purchasing the fellow Taiwanese company.
Chief Financial Officer David Chang told Reuters:
Our chairman has chatted about the topic internally. Still, the chances of an actual takeover are not big as Asustek is a company that has depended on organic growth.
Asus themselves of course have their own line of phones in the Zenfone range but have never really broken into the mainstream in the big markets. They do however have a lot of financial clout thanks to their healthy PC business.
HTC on the other hand are perhaps a bigger name in smartphones but have struggled a lot in recent years and so an acquisition might be a serious possibility for the company in the near future.
All that considered, a takeover from Asus would perhaps make a certain degree of sense (I’m sorry!)
HTC were once king of the Android hill and the first to release an Android device with the Dream/G1, could Asus have what it takes to bring them back to the top or are they a sinking ship that would only cost Asus money?