HTC could finally sell Vive operations
HTC is in need of financial sustainability, but it could just as well do with a quick cash boost. It hasn’t been able to do that with its poorly-performing phones or its moderately successful VR headset operation, Vive — market capitalization is only a quarter of what it was 5 years ago.
The Taiwanese tech company considered a sale of the Vive business last year, but didn’t ultimately go through with it. Bloomberg reports from its company sources, though, that a sale is back on the table. HTC could also sell itself in whole, though it will be difficult for any one suitor to digest its multiple businesses. The company could also go on with business as usual.
IDC estimates at least 190,000 Vive sales in the first quarter — no word on licensing fees from game and app developers and how competition from Oculus and Sony weighs against it, though there is a general positive feeling here. It contrasts with the smartphone business: despite growing flagship phone sales and a contract to manufacture the Google Pixel 2, it’s still seen as a money pit by investors. Interestingly, the company batted back at rumors that the company was selling its smartphone business last year.
The markets cheered the speculation and HTC stock jumped about 7 percent early in the Taipei trading day.