Rumors suggest that Lenovo, the desktop PC and laptop giant, could be the one with plans of acquiring HTC’s mobile division.
According to a Taiwanese publication Apple Daily, confidential discussions were held between between Lenovo and HTC since August. The report states that the buyout between the two could be announced in 2014’s first half.
HTC is presently facing stiff competition from its rival smartphone makers including Apple and Samsung which have hit HTC’s overall sales very hard. This has led HTC slip into red in 2013’s first half with an operating loss of $101 million. The Taiwanese handset manufacturing company posted an operating sales loss of $3.5 billion last quarter which is just one third of the sales figures recorded during same period last year.
The losses incurred by the company are even more than the figure what analysts expected. Looking at the losses, it would be difficult for the company to exist in the smartphone market.
HTC’s chairwoman and co-founder, Cher Wang, has however ruled out the possibilities of any buyout responding to the growing acquisition rumors. She presently owns around 3.8% share in HTC.
HTC’s present condition is somewhat similar to the struggling companies Nokia and BlackBerry which have either faced buyouts or are in acquisition talks with different companies because they couldn’t match up with their rival companies.
