The news spread around the network that the American chipmaker has received a license to work with Huawei. This is according to some media outlets citing a source close to Huawei. As a result, if you believe this information, the Chinese company may purchase Snapdragon chips for its smartphones. At the time of writing, both companies have neither confirmed nor denied this information.
The same sources also spoke about the Honor sub-brand being sold, but a number of the brand’s executives will become the owners of a number of shares in the company. The deal could be worth $15 billion or even $30 billion.
A number of employees of the company have already received a notification about the change of ownership of Honor, with a proposal to continue working despite the upcoming changes. All employees will remain part of the Honor team, but under the wing of another owner. Those who do not want to continue working will be able to leave, having received substantial monetary compensation.
Huawei secretly sold the Honor brand
The US sanctions that have hit Huawei are forcing the company to look for ways to survive. And one of the ways out is the sale of the Honor sub-brand. Yesterday it was reported that the issue with the sale of Honor’s assets has been resolved and by November 20, it should be officially announced who will become the new owner of the sub-brand. Reuters, citing knowledgeable sources, named the owner of Honor.
This is a consortium that consists of the phone distributor Digital China and the government of Shenzhen. Digital China will eventually become one of the two largest shareholders in Honor and its share will be 15%. The company itself – Honor Terminal Co Ltd was formed in April this year and is wholly belongs to Huawei. Digital China will be joined by at least three investment companies supported by the financial government and the Shenzhen Technology Center. Each of them should eventually receive from 10 to 15% of the shares.
Following the acquisition of Honor, the new owners plan to retain most of their management team and over 7,000 employees. Within the next 3 years, the company must go public for a public offering.