Lenovo Has Been Negotiating to Buy HTC for Two Months Already
HTC used to be the smartphone name that no one knew, because they largely operated as a Windows Mobile OEM for a number of different carriers around the world. Then, they started to make a name for themselves in the world of Android. Eventually companies like Samsung started edging in and HTC found themselves delivering good products that simply did not sell. And now, they have announced and experienced the company’s first ever quarterly loss.
It’s no secret that HTC is in need of some help and it looks like it’s more prepared than ever to get acquired by someone else. And that someone else could be Lenovo. In fact, according to sources close to the matter, the two companies have been “in talks” since August, possibly setting up a formal acquisition announcement for the early part of next year.
This is far from the first time that a notable mobile company got acquired by someone else. Motorola Mobility got snatched up by Google, Nokia is the process of being purchased by Microsoft, and BlackBerry is getting sold off too. A partnership/acquisition between Lenovo and HTC makes a lot of sense. Lenovo is already a big smartphone name in its native China, but it has had a tough time expanding overseas. HTC is already an established brand in many international markets.
By the sounds of things, Lenovo would intend to keep the HTC name, but would largely produce its own hardware. This would be the same approach the company took with the ThinkPad brand when it bought that business from IBM. And I think we’d all agree that ThinkPad isn’t doing too badly. Could this be how HTC gets a second wind?
Source : Android Beat