HTC turns its Vive VR business into a separate subsidiary

HTC has decided to take its most valuable asset, the Vive VR headset and the budding ecosystem developing around it, and turn it into a separate business. Reports earlier this week indicated that HTC was spinning off the Vive, but the company has now clarified for The Verge that it is only establishing a wholly-owned subsidiary, which it is calling HTC Vive Tech Corporation. HTC’s statement in full:

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.

Reading between the lines, what this says is that HTC’s overall reputation isn’t as good as that of the Vive headset, and the company wants to detach the ailing aspects of its business (i.e. everything else) from any potential Vive deals. If you’re a software developer or accessory manufacturer looking to sign a contract, you’re probably more inclined to do it with a company that’s exposed only to the risks and costs associated with the Vive’s performance and not one that also has to bear the burden of a troubled smartphone lineup.

At Mobile World Congress this year, I wrote enthusiastically about HTC’s chances to recover by tying its fortunes to the gloriously promising Vive VR headset, but evidently the realities of doing business make that difficult. Nothing material will change in the short term, as the Vive remains firmly within HTC’s control, but the fact is that the Taiwanese company’s most (only?) prized asset is now a separate company.


HTC Vive VR review

Comments

Or vice-versa? Maybe they want to separate the risk of VR (which is still an expensive, early product line) from their core business.

Alas, the core is rotten. This is definitely a cleaning-up-the-Vive’s-image sort of decoupling.

"cleaning-up-the-Vive’s-image" cleaning it up for who? Nerds tend to like HTC and think they make good products so how does this help. The average Joe doesn’t know what HTC even is so it still wont matter to them.

Because when you are securing a deal, you make commitments during said deal. If parent HTC company goes bankrupt due to their financial issues, the Vive won’t be taken out with it.

Ah, the HTCVTC

Honestly, I wish they had turned it into a "gaming division" and started selling controllers, mice, and keyboards too. I love the feel of the Vive and it’s controllers, and am pretty confident that I would love any gaming peripheral they would conjure up.

Also, since when was HTC bad? I knew someone with an m8 that loved it. Back in the day I had the HTC G1 and G2 (known as Hero in some countries) and the G2 was built so well. I still can’t believe how well it held up, even compared to newer phones today it took a massive beating. And that thing had a hinge that held the screen on so you could move it out of the way to get to a keyboard. And it was still a tank of a phone.

I honestly might have gone with HTC if Motorola hadn’t hooked me with the Moto X.

well, i think the critical thing here is that your example of someone who loved an htc phone was someone that loved the m8, not the htc 10. it isn’t that htc is bad, it is more that the phones, while good, just are not good enough to take android sales from principally samsung, but also lg, sony, and motorola.

Is there much risk for the software developer or accessory maker if vive is on htc proper like the article suggest? Or this is more to do with banking and loans? I’m sure a profitable vive team can get loans at a better rate than HTC main can if they are saddled with poor performance.

(also would this allow them to sell off separate shares if they wanted to?)

i think it has more to do with companies not being hesitant to create games for a company that might go under.

for example, like nintendo or something. if the gaming system you are designing for is on the verge of bankruptcy, you are far more likely to go with more well heeled system, in this instance, the sony backed playstation vr or the oculus with facebook money and a relationship with microsoft.

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