HTC could soon be looking for a buyer to help save the company
A report from Bloomberg claims that the company is working with an advisor to determine the best course of action for the company. Options which are currently being discussed include completely spinning off HTC’s Vive virtual reality business or bringing in a strategic investor to buy HTC outright. Based on the market’s current valuation, HTC is worth roughly $1.8 billion.
While HTC may only have 2% of the global smartphone market share, but company’s material assets (manufacturing plants, land, headquarters, and product inventory) are said to be worth more than the company’s current market value. The issue is that HTC is bleeding money and has not had a profitable quarter in more than two years. The company is known for building some of the best Android smartphones, but the lack of marketing know-how has resulted in award winning devices that are unknown to the general public.
Would you still buy an HTC phone if the company was acquired by another player in the smartphone space?