HTC courting investors and buyers interested in possible deal

HTC's financial woes are a well-known story despite CEO and co-founder Cher Wang's attempts to turn things around since returning in 2015. In the past Wang has discussed a variety of moves intended to restore the company to profitability like the current focus on the VR market. In a sign that things are becoming increasingly desperate, sources say the company is currently working with an advisor on potential solutions ranging from finding a new investor to selling off business units or even securing a buyer for the whole company.

According to individuals who are familiar with some of the talks, one of the potential targets is Google. The concept of Google buying or investing heavily in an Android manufacturer seems to be a bit suspect. Although it is subtle, Google's moves typically take the form of partnerships to provide hardware on Google's behalf. That was a strategy used for Nexus phones and currently HTC is tapped for one of the forthcoming Pixel 2 smartphones. We will have to wait to see if Google does something more overt.

Although a direct Google financial interest may be unlikely, investors still seem to welcome the news that HTC is at least working on and entertaining possible solutions that involve outside parties. This optimism can be seen in the positive move in HTC's stock price, rising almost five percent since the news surfaced.

While potential investor interest in HTC, or at least parts of the company, is good news, a price cut to the HTC Vive VR headset earlier this week was probably unwelcome. HTC is trying to be a significant player in that market, but is having to resort to price cuts in an effort to “expand product sales and its user base” in lieu of maintaining profit margins and earnings.

source: Bloomberg