The world’s largest PC maker Lenovo is reportedly considering a possible takeover of the troubled Taiwan smart phone maker HTC as the Chinese company tries to raise its smart phone game.
HTC has been holding secret meetings with Lenovo since August, according to Taiwan media, despite earlier reassurance made by HTC CEO that the smart phone maker won’t seek buyout offers.
Lenovo is likely to invest in the Taiwan company through a stock-for-stock acquisition or a joint venture, but has to keep the HTC name, reports said.
The two are expected to reach a deal in the first half of 2014, according to the rumor.
Lenovo, which has replaced HP to be the world’s largest PC maker in July, is becoming aggressive on China’s huge smart phone market, ranking the second largest vendor in China with an overall market share of 12.3 percent.
HTC, in a stark contrast, has been suffering slumping businesses as DC statistics showed HTC sold 7.1million units in the fourth quarter of 2012, a remarkable 30.6% fall from a year earlier, leaving it a meager 3.1 percent share in the global smart phone market.
HTC recognized a loss of 630million yuan in the third quarter, its first loss since 2002, with its high-end phones failing to boost sales, according to the latest financial results released last week.
The company’s shares plunged by 90 percent over the last three years.