Honor will still be sold: according to rumors, Huawei is negotiating a deal for $ 3.7 billion
Last week, reputable analyst Ming-Chi Kuo suggested that Huawei might sell its subsidiary Honor to get it out of US sanctions. On the same day, Huawei employees said that the company values its sub-brand, and there is no talk of selling it. However, the latest inside information suggests that the sale of Honor is still seen as a possible way out of the crisis.
Huawei Technologies is in talks with Digital China Group and other companies to sell Honor’s smartphone business, according to Reuters, citing a knowledgeable source. The estimated amount of the proposed deal is 15-25 billion yuan, or $ 2.2-3.7 billion. This is done ostensibly so that Huawei can focus on premium smartphones, while the Honor brand is focused primarily on a youth audience and more affordable devices.
The source clarified that the exact list of assets to be sold has not yet been determined, but it will necessarily include the Honor brand, research and development resources, and a supply chain management division.
Digital China is the largest distributor of Honor smartphones and is considered the most likely future owner of the brand. Although, according to available information, TCL and Xiaomi are also potential buyers. But they did not identify themselves in this status due to the confidentiality of the negotiations, Reuters said in a statement.
At the time of this writing, Huawei and TCL declined to comment on the news of a possible sale of Honor, and Digital China and Xiaomi did not respond to Reuters’ inquiries.
