Google takeover rumours suspend HTC shares
HTC trading suspended amid Alphabet Inc takeover
by Abi Moses on 22nd September, 2017
Shares in the Taiwanese smartphone HTC will be suspended from trading tomorrow. This news comes due to rumours that Google’s parent, Alphabet, is set to takeover.
The company has issued a statement in response to a report by the China Times, in which it said it "does not comment on market rumour or speculation".
HTC was once a huge player in the smartphone market, though has struggled to compete with Samsung and Apple.
In August there was speculation that HTC was going to sell its virtual reality unit, Vive, or even all of the company.
Approximately five years ago, HTC was platformed as the world’s bestselling smartphone maker, due to it having a market share of approximately 9%.
Overall, its share is now even lower than 1%.
A few analysts have questioned why Alphabet would want to buy another mobile phone distributor.
Benefits of deals
In 2011, Alphabet (which was then called Google) bought Motorola’s Mobility for $12.5bn, only to then rid of it just three years after.
However, a deal with HTC could have numerous positive benefits, as HTC builds Alphabet’s own smartphone, the Pixel.
The Pixel uses an Android operating software, developed by Alphabet, so the deal could combine software and hardware, which may be a good option.
This deal would also make a slight change to Alphabet, which does have roughly $100bn of cash.
HTC’s shares ended yesterday’s session approximately 2.5% higher than on Monday. Overall, the company is said to now be worth £1.4bn ($1.9bn).
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