HTC said it is not interested in being acquired by PC maker Asus, which hinted at the possibility on Friday that it would make sense to acquire the Android smartphone maker.
“We strongly deny the news. We didn’t contact Asusteck and will not consider the acquisition,” HTC said, in a statement on its website. “As an international brand, HTC will continue to design world-class innovative smart devices through its pursuit of brilliance brand promise.”
On Friday, Asus Chairman Jonney Shih suggested at the company’s shareholder meeting that the acquisition was a good idea, according to PCWorld. Later, the company clarified that there has been no formal bid.
Regardless, it could make some sense for the two Taiwanese to join forces.
For the past few years, HTC has struggled to compete in the highly competitive smartphone market despite being known for building quality devices. Revenues have fallen, the stock has hit lows not seen in a decade, and there’s been an exodus of senior leaders and employees, including dozens of layoffs at its HTC Americas division based in the Seattle area.
For Asus, an acquisition could help it break into the smartphone market, especially in the U.S., where it has been able to create a name for itself as a PC and notebook maker, but struggled to sell phones. Asus often ranks in the top five phone manufacturers worldwide.
But HTC does seem to have a plan to get it back on track, and could potentially want to see that through before being acquired.
In March, the company said Founder Cher Wang will take over as CEO from Peter Chou, who has served in that position for more than a decade. Meanwhile, Chou remains in charge of product development. In recent quarters, it’s focused on developing other sources of revenue through the sale of such accessories as cameras and virtual reality equipment.