Asus considering an acquisition of fellow Taiwanese company HTC

HTC continues to struggle financially. Its outlook may change if Asustek carries early internal discussions to a purchase of HTC.

Recent HTC financial results show that HTC continues to struggle to remain relevant in today's highly competitive smartphone world. A recent statement made by Asustek Chairman Johnny Shih at its recent annual general meeting shows there is some interest in acquiring its fellow Taiwanese company.

There have been rumors, and possibly hopeful desires, of HTC purchases in the past. There was reported interest from Microsoft, Lenovo, Facebook, and others. While HTC remains independent it may not be able to continue in this manner forever so an acquisition seems a likely future scenario.

Mr. David Chang, Asustek chief financial officer, made the following statement to Reuters after being asked about the general meeting response to the HTC question:

Our chairman has chatted about the topic internally. Still, the chances of an actual takeover are not big as Asustek is a company that has depended on organic growth.

Asustek is a much larger company with the resources to purchase HTC and then expand its smartphone line from the low end to the high end. HTC makes some excellent low to mid-range devices and I would like to see a combined HTC ASUS Android lineup.

ZDNet's Kevin Tofel recently purchased a Asus ZenFone 2 and is pleased with most aspects of the device. The HTC One M9, see my full review, is a fantastic smartphone, but the camera should be better.

While the statement to Reuters was made in public and many hope for an Asus purchase, it's clear an HTC purchase is not imminent. Do you think this purchase makes sense for both companies?