who would be behind the supposed purchase of Honor

The possible sale of Honor by Huawei has been rumored for a long time, and also with names as disparate and important as Realme or Xiaomi as interested ... But nothing is further from the truth!

The alleged sale of Honor by Huawei It has undoubtedly been the news of the week, and it is that despite being an old rumor that pointed to Xiaomi itself as an interested party, something that we saw very far certainly, it seems that now the petal brand has made some progress with this delicate operation surely linked to the veto of the Trump administration.

And it is that yes, despite the victory of Joe Biden in the United States, which could reopen access to North American technology, Huawei has wanted to explain that this sale is for now a rumor, as the colleagues from GizChina told us, although you have not made it clear that you will not sell your signature spin-off opening the door for the operation detailed by Reuters to be completed soon.

Shenzhen, Huawei's home base

Shenzhen, the birthplace of Huawei, could have stayed with the Honor firm. (Image | MuyComputer)

In fact, some media claimed this week that the sale of Honor was already a fact, and one of the investment partners, Bu Rixin, has spoken a little about this fact in a recent interview:

News of Huawei's Honor sale reached the public very early, but media interest has recently increased.

Huawei's chip acquisition and its own chip manufacturing business have shown no clear signs of improvement. If this continues, it will inevitably end up affecting the normal development of Huawei's mobile phone business. Therefore, if it is sold and independent from Huawei, Honor will not be restricted by the ban and will continue to develop business cooperation with major chipmakers such as Qualcomm and MediaTek.

There is no doubt that Huawei's mobile business is very unstable right now, and despite building top-quality smartphones like the Huawei Mate40 Pro, the lack of Google services and Kirin 9000 chipset stock issues are weighing on sales of the device in international markets.

Bu Rixin adds, that right now Honor would be an interesting asset for many other companies, so Huawei could get liquidity for an operation of high figures also avoiding the stagnation of its youngest and most carefree manufacturer, which certainly remained in the 30 Series also without official arrival in Spain of these latest devices:

Huawei can avoid stagnation of Honor's mobile phone business and earn a high acquisition premium; After the spin-off of Honor and Huawei, the former will be able to develop more independently, while the buyer will have acquired high-quality technology, equipment and assets.

Huawei and the Trump administration veto

An operation that would be mainly motivated by the Trump administration's veto of Huawei.

Okay, maybe Huawei will sell Honor… But who the hell would he sell it to?

Well, considering that indeed Huawei neither confirms nor denies the operation, that investors in China are already talking about the issue and that when the river sounds water, we are going to give credibility to the Reuters news and we will try to explain the business consortium that would be behind the purchase of Honor.

To begin with, it should be noted that there is talk of multimillion dollar figures around 100,000 million yuan, something like about 12,750 million euros current change, which would confirm Bu Rixin's views on "A high quality asset".

The sale effectively would include not only the brand, but practically all of Honor's assets, including its research and development department, supply chain management and all company-owned technology.

Honor 30 series

The Honor Series 30, the latest top of the range from Huawei's spin-off firm.

Speaking of those who would sit on the other side of the Huawei table, it seems that it will be a group of stakeholders led in this case by one of the largest telephony distributors from the Asian country, Digital China Group Co Ltd, which was already the main distributor of Honor Terminal Co Ltd's mobiles and would get a stake from up to 15% of the company.

According to the sources, Digital China is also partner of Huawei in other businesses such as cloud computing, and I would have already negotiated the bank loans with which it would finance most of the amount.

The other main stakeholder is precisely Shenzhen city government, cradle and base of operations of Huawei as well as a modern city already considered the Chinese Silicon Valley, surely due to the concentration of companies and start-ups technology companies that settle in that city in Guangdong province.

This interest of the government of Shenzhen financial and technology center would be confirmed by three companies specialized in investment who would each keep between 10% and 15% of Honor Terminal Co Ltd.

Obviously and considering that neither party has confirmed anything about the operation, for now it will continue to remain as a fairly plausible rumor, where even information about an after-sale has transpired in which Honor would retain practically all of its management team and the 7,000 employees it has, in addition to approve its IPO in about three years since its independence.