CNet posted an articled titled "HTC facing backlash for S3 acquisition". What's wrong with this picture.
First of all, HTC doesn't even trade on the NYSE or NASDAQ. I know because I was searching for it yesterday when I wrote about just this deal that Citigroup is no happy about. Plus, eveyrone knows that HTC's buyout of S3 is for defensive reasons. So why is that a bad move?
Citigroup downgrading HTC because it think the mobile device maker will face some head wind, okay, I get that. I'm fine with that. Everyone knows HTC already has to pay Microsoft about $5 for every Android device it makes so beefing up its patent defense isn't a bad idea. Heck, Microsoft is allegedly asking $15 a pop from Samsung and who knows how much from Banes and Noble. HTC simply wants to make sure no one else come knocking on its door asking for their cut.
Then there's the CNet article geared toward sensationalism. "Backlash". "Wall Street does not like HTC's decision to purchase S3 Graphics". Really, again, it's just one bank who's not happy. And I'd hardly called the Taiwanese stock exchange "Wall Street".
At the end of the day, I'm sure HTC has analyzed is position and felt that it stands to benefit from the buyout. S3 already has a win against Apple, one of Android's biggest nemeses, and HTC will soon feel the brunt of the iPhone maker's legal power.
Source: CNet (but trust me, don't click through…not worth your time.)