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| Version 2 | Version 3 |
|---|---|
| HTC shares suspended on Google takeover rumours | HTC shares suspended on Google takeover rumours |
| (about 5 hours later) | |
| Shares in the Taiwanese smartphone firm HTC will be suspended from trading on Thursday amid rumours Google's parent Alphabet is planning a takeover. | Shares in the Taiwanese smartphone firm HTC will be suspended from trading on Thursday amid rumours Google's parent Alphabet is planning a takeover. |
| The company issued a statement in response to a report in the China Times, and a request from the Taiwanese Stock Exchange. | The company issued a statement in response to a report in the China Times, and a request from the Taiwanese Stock Exchange. |
| It said said it "does not comment on market rumour or speculation". | It said said it "does not comment on market rumour or speculation". |
| HTC was once a major player in the smartphone market but has struggled to compete with Apple and Samsung. | HTC was once a major player in the smartphone market but has struggled to compete with Apple and Samsung. |
| Last month there was speculation that HTC was planning to sell its virtual reality unit, Vive, or even the whole company. | Last month there was speculation that HTC was planning to sell its virtual reality unit, Vive, or even the whole company. |
| Five years ago, HTC was the world's fourth bestselling smartphone maker with a market share of about 9%. | Five years ago, HTC was the world's fourth bestselling smartphone maker with a market share of about 9%. |
| Its share is now less than 1%. | Its share is now less than 1%. |
| Some analysts have questioned why Alphabet would be interested in buying another mobile phone maker. | Some analysts have questioned why Alphabet would be interested in buying another mobile phone maker. |
| Deal benefits | Deal benefits |
| In 2011, Alphabet (then named Google) bought Motorola's Mobility for $12.5bn, only to sell it on three years later. | In 2011, Alphabet (then named Google) bought Motorola's Mobility for $12.5bn, only to sell it on three years later. |
| But a deal with HTC could have greater benefits, as HTC builds Alphabet's own smartphone, the Pixel. | But a deal with HTC could have greater benefits, as HTC builds Alphabet's own smartphone, the Pixel. |
| The Pixel uses Android operating software, developed by Alphabet, so the deal could integrate hardware and software, which might be an attractive option. | The Pixel uses Android operating software, developed by Alphabet, so the deal could integrate hardware and software, which might be an attractive option. |
| The deal would also be small change to Alphabet which has around $100bn of cash. | The deal would also be small change to Alphabet which has around $100bn of cash. |
| Ben Wood, technology analyst at CCS Insight, said he was a little perplexed by the idea: "After previously having the disastrous acquisition of Motorola, to plunge in with both feet to buy another looks very challenging. | |
| "However, it could also be a sign of a step up in Google's intentions to be a smartphone maker. It would give it a platform to demonstrate the art of the possible with Android. Against that though, it puts it on a collision course with its own Android-buying customers, notably Samsung." | "However, it could also be a sign of a step up in Google's intentions to be a smartphone maker. It would give it a platform to demonstrate the art of the possible with Android. Against that though, it puts it on a collision course with its own Android-buying customers, notably Samsung." |
| HTC's shares ended Wednesday's session 2.5% higher. The company is worth £1.4bn ($1.9bn). | HTC's shares ended Wednesday's session 2.5% higher. The company is worth £1.4bn ($1.9bn). |
| Analysis, Leo Kelion, technology desk editor | Analysis, Leo Kelion, technology desk editor |
| A Google takeover of at least part of HTC's business has been rumoured for some time. | A Google takeover of at least part of HTC's business has been rumoured for some time. |
| The Taiwanese firm made the first ever Android handset - the Dream - and is rumoured to be the manufacturer of one of the US firm's Pixel 2 models, which is likely to be announced next month. | The Taiwanese firm made the first ever Android handset - the Dream - and is rumoured to be the manufacturer of one of the US firm's Pixel 2 models, which is likely to be announced next month. |
| But Google has already struggled to integrate one phone-maker, Motorola Mobility, and it's not clear why it would want to repeat the experience. | But Google has already struggled to integrate one phone-maker, Motorola Mobility, and it's not clear why it would want to repeat the experience. |
| Yes, HTC has proven itself capable of developing unusual features - such as the squeeze-to-take-photos design of its recent U11 - but it has repeatedly failed to launch a bestseller. And does Google really want to own HTC's factories at a time when others, including Apple, are happy to outsource production? | Yes, HTC has proven itself capable of developing unusual features - such as the squeeze-to-take-photos design of its recent U11 - but it has repeatedly failed to launch a bestseller. And does Google really want to own HTC's factories at a time when others, including Apple, are happy to outsource production? |
| Read more from Leo: | Read more from Leo: |