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.
This would make for an interesting acquisition, perhaps Qihoo 360 can see just how big the Vive could prove to be.
Very interesting – I’d like to see HTC evolve into something amazing and keep up with or create new trends and this might allow it to progress
They just need a little more magic to happen.
Nick what do you think ?
It’s hard to say what an investment like this would mean for HTC. From what I can tell, a deal like this would simply bring extra cash to the table as Qihoo 360 doesn’t have any experience in making smartphones or any other hardware.
Personally, I think HTC needs to stay independent, but the company needs to recast its vision for its flagship smartphone line. The Desire family appears to be doing very well, but the One family isn’t hitting the right key with the public.
You’re on the money there Nick
The One flagship and line need to compete with fierce competition presendted in the android market
HTC have let it slip and need to take back it’s innovative crown too