HTC Corp, the beleaguered manufacturer that once ranked among the world\u2019s top smartphone makers, is exploring options that could range from separating its virtual-reality business to a full sale of the company, according to people familiar with the matter.<\/p>\n
The Taiwanese firm is working with an adviser as it considers bringing in a strategic investor, selling its\u00a0Vive virtual reality headset business or spinning off the unit, the people said. HTC has held talks with companies including Alphabet\u2019s Google, according to the people, who asked not to be identified because the information is private.<\/p>\n
A full sale of HTC, which has businesses ranging from VR to handset manufacturing, is less likely because it isn\u2019t an obvious fit for a single acquirer, one of the people said.<\/p>\n
Shares of HTC jumped as much as 8.5% in Friday trading, hitting the highest level in three weeks. They were up 5 percent at 10:39 a.m. in Taipei, giving HTC a market capitalization of $1.9 billion.<\/p>\n
Before the move, the company had shed about 75% of its value over the past five years as its smartphone market share dipped below 2%.<\/p>\n
No final decisions have been made, and HTC may choose not to proceed with any strategic changes, the people said. Representatives for HTC and Google declined to comment.<\/p>\n
The Taoyuan City-based firm has been attempting to refocus its growth prospects on the high-end VR business, with shipments\u00a0of the Vive headset totaling more than 190,000 units in the first quarter, according to research firm IDC. HTC also has a contract manufacturing deal to assemble Google\u2019s Pixel handset.<\/p>\n
\u201cIt\u2019s a cutthroat Android smartphone market out there,\u201d\u00a0 Ramon Llamas, IDC\u2019s research manager for wearables and mobile phones, said in an interview, referring to the mobile operating system developed by Google.<\/p>\n
\u201cApple and Samsung have made it hard for HTC to stay at the top of the market, and Chinese phone makers have made it hard for HTC to dominate the middle and low end of the market,\u201d Llamas said.<\/p>\n
A transaction with a Silicon Valley firm like Google would mark a face-saving moment for Cher Wang, HTC\u2019s co-founder and largest shareholder, who took over as chief executive officer of the the manufacturer in 2015.<\/p>\n
Wang has been unable to stem the losses in market share since returning to the company in a full-time capacity. The daughter of a petrochemical billionaire, Wang was Taiwan\u2019s richest woman until HTC\u2019s stock tanked.<\/p>\n
Click here for Gadfly\u2019s take on the decline of HTC\u2019s business.<\/p>\n
HTC,\u00a0founded in 1997, began as a contract manufacturer. In 2002, it won a deal with Microsoft Corp. to make Windows-based phones and quickly became one of the top producers globally. It also made the first Android phone in 2008.<\/p>\n
Vive is a \u201cdifferent beast\u201d from Facebook Inc.\u2019s Oculus VR and\u00a0Sony Interactive Entertainment LLC\u2019s PlayStation VR, Llamas said. \u201cI am not seeing other companies really making that play, competing in that same area,\u201d he said.<\/p>\n