HTC to Halt Trading Shares for Tomorrow’s ‘Major Announcement’

One of Taiwan’s premier tech brands HTC has announced that it is halting the trading of its shares tomorrow in anticipation of a “major announcement”. HTC has been one of the major manufacturers in the mobile industry and a pioneer contributor in the development of Android hardware. The company struggled to gain profits recently and as a result, it was speculated to be in the final stages of an acquisition deal with Google.

The Taiwanese company was once a thriving leader in the Android smartphone world, its share price peaking at $43 in April 2011. However, a series of business mistakes, including mismanagement of the supply chained, had contributed to the failure of the company’s overall performance and financial struggle which eventually led to 94% of its shares declining over the past 6 years.

­­­­When asked for comments on acquisition rumors with Google, the official HTC responded with a statement saying, “HTC does not comment on market rumor or speculation” and despite its efforts to dismiss all ongoing talk, it seems imminent that the takeover will happen.

Deal Advantages

Google has repeatedly expressed its interest of developing and expanding its hardware business for the last year or so, both smartphones and virtual reality on top agenda. HTC has already collaborated with the company for Google Pixel and Pixel XL, and is rumored to be the brains behind the production of the next generation Pixel 2.

The buyout could be a profitable deal for Google because of HTC’s favorable pricing of current shares and the possible integration of the Android operating software the Pixel uses.

"After previously having the disastrous acquisition of Motorola, to plunge in with both feet to buy another looks very challenging,” Ben Wood, technology analyst at CCS Insight, stated as he was a little perplexed by the idea.

"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."

Taking over HTC’s mobile division will have most of the factors taken care off and make things more seamless for Google, at the same time leaving HTC’s Vive autonomous which seems to be the smartphone manufacturer’s only sweet spot.

HTC's shares ended 2.5% higher on Wednesday's session. The company is worth £1.4bn ($1.9bn).

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