Taiwanese company HTC gets green light for deal with Google, shares skyrocket

A billion dollar deal disposing of smartphone assets in early 2018 will spur investment in VR tech


(CNA photo)

TAIPEI (Taiwan News) – The Taiwanese smartphone manufacturer HTC is riding a wave of good news at the end of 2017, with an extremely promising outlook for 2018.

On Friday Dec. 15, the Investment Commission in Taiwan approved a deal for HTC to dispose of a large portion of its ODM smartphone assets to the IT giant Google, reports CNA.

The company is expected to net about US$1 billion in the deal over the first quarter of 2018, which will help to offset the losses incurred over the past two and a half years.

In response to the approval of the sale to Google, investors on Monday Dec. 18 jumped at the chance to purchase shares of the company, which will further increase the profitability of HTC moving forward in 2018.

Analysts speculate that once the deal is completed in 2018, HTC shares may jump as high as US$40 a piece, reports CNA.

Moving forward in 2018, HTC is expected to focus a great deal of attention on developing VR software and hardware, as the company seeks to diversify its markets and become less reliant on smartphone production, an area where competition is growing extremely fast.

The VIVE virtual reality headset, developed in cooperation with US company Valve has been received positively since its release in April 2016.

A new product, the VIVE Focus, was revealed in Beijing in November and has already scored NT$4.5 billion worth of orders in China alone.

With the approved sale to Google, and the promising trends of VR investment, HTC will be a Taiwanese company for the world to keep an eye on in 2018.

(Image: Vive.com)