HTC offloads Saffron for less than it paid in scramble for cash
In early 2011, HTC announced that it had acquired U.K.-based digital content company Saffron Digital for $48.5 million. The buy would bolster its media content portfolio and help the then-successful smartphone maker provide top-notch services alongside its wildly popular smartphones. Fast-forward to Thursday, and HTC has reportedly sold its 100% stake in Saffron for $47 million — $1.5 million less than it paid. Focus Taiwan reports that HTC has agreed to sell Saffron to CDMG Holdings UK Limited, which is owned by leading content delivery company Cinram Group. The firm will pay HTC $7.5 million in cash up front, according to the report, and an additional $39.5 million over the next five years. HTC will also retain permanent royalty-free rights to Saffron’s intellectual property, according to the report. HTC on Wednesday announced that its revenue in the month of august had plummeted 47% on-year to $444 million as the company continued to struggle while competing with larger rivals Samsung and Apple.
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Updated to clarify IP terms.
This article was originally published on BGR.com
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