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HTC’s Vive is so popular, it might split into its own separate company

will htc spin off vive business
Jessica Lee Star/Digital Trends

HTC investors are concerned that a new company launched by CEO, Cher Wang, could be used to spin-off the company’s entire virtual reality enterprise, including the Vive headset and its associated developments.

While HTC denies that rumor, the company itself certainly does exist, with the official line being that it will explore and develop “new and innovative technology” — but what that actually means is anyone’s guess. The concern among share holders (via AndroidAuthority), is that if that new technology is virtual reality related, it could be an entirely new venture which HTC uses to absorb its current VR division.

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This new entity is wholly owned by Mrs. Wang, whereas HTC was co-founded by her and two others: Peter Chou, who maintains a position at HTC’s Future Development Labs, and Cho Ho-Tu, who remains an HTC executive.

However, Ho-Tu is said to be serving as a member of the new company’s board, along with Wang’s husband.

None of this would be as worrisome for investors if HTC’s fortunes were brighter, but in recent years it has struggled to maintain its position in the smartphone industry. As mid-range handsets become ‘good enough’ for most tasks, HTC has found it difficult to maintain a market for its high-end devices.

While share holders may have some concerns about the new venture though, for VR consumers, it sounds like good news. HTC putting so much stock in virtual reality  should mean a healthy growth of the industry as hardware and software iterations and innovations continue to be made.

That in turn could help keep HTC relevant, as VR is thought to be a potential future for the company as its smartphone sales continue to struggle; even if we did love the HTC 10.

But if it does split things up completely, what then of the parent company?