HTC hasn’t been doing too well in the smartphone market lately but the company has become a huge name in Virtual Reality thanks to the Vive headset and now, Vive is spinning off into its own company, though it will still be owned by HTC.
This was talked about during an HTC shareholder meeting earlier this week, where HTC’s president of global sales explained (via Phandroid) that spinning off the Vive into an independent subsidiary would pave the way for it to be more competitive, secure additional investment and better partnerships.
Now the move has been acknowledged outside of the board room, with a HTC representative giving The Verge the following statement: “HTC can confirm that it has established a wholly-owned subsidiary, HTC Vive Tech Corporation, as a vehicle for developing strategic alliances to help build the global VR ecosystem.”
HTC’s reputation isn’t as strong as it once was these days, with continuous losses being reported and its mobile division failing to meet sales expectations. With the Vive spinning off into its own company, it will only be exposed to the risks and costs associated with the Vive’s performance, rather than HTC as a whole, which will help with securing investments and partnerships.
KitGuru Says: HTC is already doing quite well in the VR-space but with the company’s smartphone sales in decline, it makes sense to spin Vive off into a separate entity to avoid being held back in any way.