Lenovo negotiating an HTC acquisition, report says
It's no secret HTC has been in trouble this year. There were supply bottlenecks, patent infringements and its flagship sales are definitely not what the Taiwanese manufacturer was hoping for. HTC has even sold its Beats Audio stakes and it's uncertain what will happen with the audio enhancement for the upcoming HTC phones. Finally, HTC has posted its first net quarterly loss.
And when a company has been on the downwards trajectory for as long as the Taiwanese have been, rumors of acquisitions are bound to appear.
The latest report coming from Taiwan's Apple Daily suggests Lenovo has been having talks with HTC to discuss the terms of a possible acquisition deal to be completed in the first half of 2014. According to the report, meetings have been held since late August, but there's no mentioning of how much the deal will be worth if it goes through.
There is no official confirmation whatsoever, of course, but we can't deny HTC needs help. And it better gets it earlier, rather than when it's too late.
Lenovo is a very strong brand in the Chinese market, and worldwide renowned laptop manufacturer and a company with good and growing profits. In fact Lenovo owns the latter to its acquisition of IBM's ThinkPad, so this won't be the first time it tries to bring a fallen giant back on its feet.