Mere days after ASUS chairman Johnny Shih acknowledged that they are not ruling out acquiring fellow Taiwanese OEM HTC (and then their subsequent denial that they are doing so), the latter came out with their own statement saying that they will “not consider a merger with Asus.” The statement was posted on the stock exchange website of Taiwan, and was in response to the comments made by Shih during the annual general meeting.
While it is seen as a good thing for the struggling HTC to be acquired by the more stable Asustek, apparently, based on their brief statement, they don’t think it is so. They clarified that they have not made any contact with Asus for any kind of merger or acquisition. Because of Shih’s statement and also a comment by the chief financial officer that this has been mentioned internally, the stocks of HTC rose by the 10% market limit. This is unusual movement for the company’s stocks since they have been in a steep decline ever since the earnings outlook for the current quarter was released and it was not looking good.
Despite the casual mentions by the Asus executives, the company itself posted on the stock exchange that they have no investment plans for now. The two may just be being cautious about any possibility of a merger, or HTC really doesn’t want to be acquired by Asus. The latter is more known for their laptops and netbooks, although they have been making a name for themselves now with their budget Zenfone series.
HTC used to be one of the major smartphone brands globally, but with Apple and Samsung dominating the market, and with the advent of various Chinese brands, their market share has become smaller. Analysts see the infusion of Asus’ more stable finances and stocks may help boost the brand. But it looks like this may not be happening anytime soon.
VIA: Reuters
