Monday, May 9, 2016

HTC creates a subsidiary dedicated to “new technologies” –


After the publication of an article in the Chinese newspaper China Times and the plunge of its action in the stock market, HTC has formalized the creation of a subsidiary called HTC Vive Tech Corp. A subsidiary that should integrate virtual reality.

Will there be a company dedicated to reality Virtual HTC in the ecosystem? He finally seem so. In an official statement issued last week to financial analysts and observers, the company said it had taken the first steps towards creating a company dedicated to the development of “new technologies”. This subsidiary, 100% controlled by HTC, HTC would be called Vive Tech Corp. A name that clearly evokes the range of HTC Vive, including virtual reality helmet Vive Pre which marketing began last month

Vive Pre
the HTC virtual reality headset could join the future subsidiary of the same name

a confirmation after a denial

It is not willingly that HTC has confirmed this information. For, despite persistent leaks dating back to January, Cher Wang has always denied this project to reassure shareholders who feared that the manufacturer can no longer return to the path of profitability by removing his only potential for growth. Indeed, late last year, the president of HTC said will focus on virtual reality while taking a step back vis-à-vis the telephony activity on which it fails to meet the profitability.

However, an article in the China Times relayed by Focus Taiwan set fire to the powder. He stated that despite its previous statements, Cher Wang created many new business which it would be the president and whose capital, not held by HTC, would reach 27 000. Ho Cho you, the founder of HTC, and Wen-Chi Chen, husband of Cher Wang, are part of the board. The specific activity of this new entity is not specified in the official documents, but the name of the company leaves very little doubt.

A sister company or subsidiary true?

According to HTC, the new company is a 100% subsidiary of the manufacturer, suggesting that work on virtual reality and its potential success could benefit the entire group. However, the discovery in the media of this information after a total denial casts doubt on the veracity of official. Nothing proves that Vive Tech will be a subsidiary of HTC. It could very well become a company controlled by the same shareholders or a joint holding company.

Even if this proves true, it should not remain at 100%, as a spin off activity typically used to attract investors to bring in fresh money. And said arrival of new investors, said earnings dilution for shareholders already. At the Taipei stock exchange, the action HTC continues to plummet. It has lost 20% since Wednesday, May 4


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