Asus Likely to Acquire Struggling Manufacturer HTC

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Despite the efforts that HTC has been taking to get a top position for its devices in the smartphone market, the firm’s stock price is at an all-time low. Furthermore, the price is dropping continuously.

This is the right time for another firm that is interested in the struggling manufacturer to make a bid to acquire it. The talk is about Asus, a fellow Taiwanese manufacturer as the firm’s Chairman Johnny Shih has expressed his interest in acquiring HTC.

At an annual meeting today, the executive was questioned regarding the interest in HTC and he has replied stating that the firm has not ruled out making a bid to the firm. In the meantime, the CFO of Asus, David Chang stated that the firm has always relied on organic growth and this shows that the chances of a deal between HTC and Asus are too slim.

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Though HTC One M9 is an impressive smartphones, the firm’s shares started taking a plunge ever since the device was launched. Eventually, the shares have reduced to as low as 50 percent in value. The firm cut the production of the One M9 by around 30 percent in the second quarter.

In order to revive its market share, HTC revealed that it will be launching a new re-designed hero phone in October this year. Right now, the market value of HTC is slightly over $2 billion, and it was $33.8 billion in the year 2011.

Source: Reuters

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