Huawei has agreed to sell subsidiary smartphone brand Honor to a consortium of over 30 agents and dealers, according to a report from Reuters.
The budget smartphone brand Honor was sold to Shenzhen Zhixin New Information Technology, a new company the buyers formed to complete the purchase. Huawei will reportedly not hold any shares of the new Honor company after the change in ownership is complete.
In a statement, the sale represents a “market-driven investment made to save Honor’s industry chain.” The change of ownership will not impact Honor’s development direction, however, and will continue with its plans.
The sale amount was not disclosed, but other reports put it somewhere around USD 15.2 billion. The money will presumably be used to keep Huawei afloat as they pursue full independence from companies that use US-based technologies.
Earlier this month, Huawei announced that it had plans of building a factory for 20nm chips for its 5G telecoms equipment, as news of Qualcomm being granted the license to supply them with 4G chips was announced.
Huawei’s struggles started when the US Government placed the company on the entity list. Even though its mobile business did well initially, they eventually reached a point of survival.
Last September 15, Huawei was cut off from major suppliers that rely on US technologies for their products. But things have slowly turned around, as more and more companies were granted licenses to work with the tech giant.
At the time of this article, there are now numerous companies with licenses to work with Huawei, including Samsung Display, Sony, Omnivision, Microsoft, Intel, AMD, Skyworks and many more.