Rumor: Qihoo 360 to invest $661 million for a 31.5% share of HTC
Citing sources at international securities investment houses, it.sohu.com is reporting that Qihoo 360 may be planning to invest $661 million into HTC by purchasing a 31.5% share of the company. Qihoo 360 is an internet services company which specializes in freemium desktop and mobile security apps. While Qihoo 360 posted $1.39 billion in revenue and $222.8 million in profits in 2014, the company’s current market capitalization sits at $8.13 billion, giving the company more than enough breathing room to invest heavily into HTC. It’s unclear why Qihoo 360 would be interested in buying such a large chunk of HTC, but it.sohu.com speculates that HTC’s patent portfolio may be the main target.
HTC has denied to report, claiming that neither the company nor Cher Wang has been in contact with Qihoo 360 regarding investment and sale of a 31.5% share of the company.
HTC has already made it clear that it will not consider any buyout offers, but we’re not exactly sure if HTC would be filling to give up nearly a third of the company for a sizable investment. HTC’s balance sheets show that the company has enough cash on hand to keep the company running for few years without making a profit. But that could change if HTC repeats the sale numbers it posted in he second quarter of this year.