Why Google Acquiring HTC Would Make More Sense Than Googorola
If at first you don't succeed, make another acquisition?
The Taiwan Stock Exchange has announced that shares of beleaguered Taiwanese smartphone maker HTC will halt trading tomorrow, Sept. 21, pending "the release of material information." Once said information is released, shares will resume trading. The announcement comes as speculation has intensified that Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google could be interested in scooping up the original equipment manufacturer's (OEM) remaining assets.
Once a prominent smartphone brand, HTC has fallen out of favor in recent years, which is reflected in its financial results. HTC posted an operating loss of 2.2 billion New Taiwan dollars ($73.1 million) last quarter for an operating margin of negative 13.6%, revenue was down 15% year over year, and HTC's cash position is dwindling. Media reports from Taiwan have suggested an acquisition is imminent, which Bloomberg corroborated this morning. The search giant may reportedly acquire HTC's phone design team for $330 million, which would include the HTC brand and approximately 100 engineers.
Source: Fool.com
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