Asus hasn’t ruled out taking over struggling HTC

Asus is currently riding a high after announcing that its mobile division turned a profit in May, having sold over 1.5 million smartphones in the month. With the release of its aggressively priced ZenFone 2 in North America, Asus expects the trend to continue and hopes to sell around 2 million handsets in June. As is natural with companies seeing positive results, Asus has given its rivals the once over to see if it is financially viable to expand by taking over a competing company to fuel further growth.

And which company has Asus looked over? None other than its local rival, HTC whose stock has recently plummeted to a record low despite the release of its latest flagship, the One M9. While Asus’ Chairman, Johnny Shih, has commented that the company had not ruled out the possibility of acquiring struggling smartphone maker HTC Corp, it would seem as if the topic is merely a possibility at the present time.

Asus’ Chief Financial Officer, David Chang told Reuters that “Our chairman has chatted about the topic internally. Still, the chances of an actual takeover are not big as Asustek is a company that has depended on organic growth.”

While Asus have downplayed the possibility of a takeover, it’s likely that we will hear more about HTC being the target of a possible takeover seeing as its share price has tanked recently. And strategies such as Project INK probably won’t help HTC’s cause all that much either.

Source: Reuters

Come comment on this article: Asus hasn’t ruled out taking over struggling HTC