HTC considering spinning off or selling Vive Unit of business?

[WMGroomAK]

The business world can definitely be a rough place, especially if you're an Android handset maker as HTC is currently exploring options to raise capital which may include spinning off or selling it's Vive Unit.

https://www.bloomberg.com/news/articles/2017-08-24/smartphone-maker-htc-is-said-to-explore-strategic-options

Quote

The Taiwanese firm is working with an adviser as it considers bringing in a strategic investor, selling or spinning off its Vive virtual reality headset business, the people said, asking not to be identified as the discussions are private. A full sale of HTC, which has businesses ranging from VR to headset manufacturing, is less likely because it doesn’t fit obviously with one acquirer, one of the people said. 

...

HTC’s market value has slumped about 75 percent in the last five years to $1.8 billion as its smartphone market share dipped below 2 percent. The Taoyuan City-based firm has been attempting to refocus its growth prospects on the high-end VR business, with shipments of the Vive headset totalling more than 190,000 units in the first quarter, according to research firm IDC. HTC also has a contract manufacturing deal to assemble Google’s Pixel handset.

Currently am wondering how much that this has to deal with the price decrease of the Vive units and how much of an impact those decreased prices would have on any business deals.  I had an old HTC One X several years ago before getting an S6 Edge and they both have been great phones.  

 

https://www.engadget.com/2017/08/24/htc-vive-business-sale-rumor/

[DocSwag]

Unless they get a ton of money for it I doubt they will. Iirc since their smartphone business is really dwindling they're betting a lot on vr

[Sakkura]

Their phone business is still a lot bigger than the VR business, and the latter is facing stiffer competition all the time. HTC could easily end up losing in the VR market the same way they have in the smartphone market.

[KE2012]

Personally, I think this would be a stupid move. I own a VR headset and every day the games that are released are getting better and better as more and more people jump onto the VR train. I do not doubt it will be the future of gaming and by having a stake in it now, HTC will be laughing to the bank sometime down the line. 

[WMGroomAK]

Just now, KE2012 said:

Personally, I think this would be a stupid move. I own a VR headset and every day the games that are released are getting better and better as more and more people jump onto the VR train. I do not doubt it will be the future of gaming and by having a stake in it now, HTC will be laughing to the bank sometime down the line. 

I agree that it would be a short-sighted move, however, they may be getting into a position of not having much choice in the matter...  HTC as a company started off and still is predominately a handset and tablet maker so VR headsets are not as big a part of their corporation as the other segments.  With added pressure from other VR development forcing them to drop their pricing on Vive headsets, the amount of profit from that segment is decreased which gives them even less flexibility with what to do.  Not saying that the competition is bad, but it is a fact of business that this kind of stuff can happen and force a companies hand. 

[KE2012]

1 minute ago, WMGroomAK said:

I agree that it would be a short-sighted move, however, they may be getting into a position of not having much choice in the matter...  HTC as a company started off and still is predominately a handset and tablet maker so VR headsets are not as big a part of their corporation as the other segments.  With added pressure from other VR development forcing them to drop their pricing on Vive headsets, the amount of profit from that segment is decreased which gives them even less flexibility with what to do.  Not saying that the competition is bad, but it is a fact of business that this kind of stuff can happen and force a companies hand. 

True, they may not have the resources to keep it in hand and be forced to sell, but at the same time, I would be looking into anything I could do to keep it, even if it means selling off other parts of the company.  I suppose though, they have probably already thought about this.  

[Sakkura]

Once LG launches their SteamVR headset, HTC's position in VR could be pretty shaky. It's not like they can outspend LG in R&D, let alone competitors like Oculus/Facebook, Sony, and Microsoft. Most of what went into the Vive wasn't even from HTC in the first place.

 

I mean I hate to be so negative on them, because they took a commendable leap into VR, but... things just don't look great for them.