Huawei discussing $3.7 billion sale of parts of Honor business: Report

  • Huawei is in talks with Digital China Group and other buyers to sell parts of its Honor smartphone business, Reuters reported.
  • The deal could be worth up $3.7 billion, a person familiar with the matter told Reuters.
  • The Chinese tech giant, facing heavy US sanctions, wants to concentrate on its high-end Huawei phones from now on, sources said.
  • Other potential buyers include smartphone maker Xiaomi and TCL Technology, the report said.
  • Visit Business Insider’s homepage for more stories.

Huawei is in talks to sell parts of its Honor smartphone business in a deal which could fetch up to 25 billion yuan ($3.7 billion), Reuters reported. 

Huawei, which faces heavy sanctions in the US, wants to step away from developing its low-cost Honor phones and instead concentrate on high-end Huawei devices, according to people familiar with the matter.

Digital China Group, the main distributor for Honor smartphones, is the frontrunner to land the deal, the people told Reuters.

It is competing with smartphone manufacturer Xiaomi Corp and Chinese electronics company TCL Technology, they said.

Honor’s brand, research and development capabilities, and its supply chain management business could be included in the deal according to two of the people.

One of them said that the deal could be an all-cash sale, worth between 15 billion yuan ($2.2 billion) and 25 billion yuan ($3.7 billion).

Huawei was put on the US’ Entity List in May 2019. This means that American companies are banned from doing business with Huawei, and can only trade with it if they get special permission from the Trump administration.

Digital China, TCL, and Xiaomi did not immediately respond to requests for comment. Huawei declined to comment.

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Exclusive: Huawei in talks to sell parts of its Honor smartphone business

By Julie Zhu

HONG KONG (Reuters) – Huawei Technologies Co Ltd is in talks with Digital China Group Co Ltd <000034.SZ> and other suitors to sell parts of its Honor smartphone unit in a deal that could fetch up to 25 billion yuan ($3.7 billion), people with knowledge of the matter said.

Embattled Huawei is resetting its priorities in the face of U.S. sanctions and will focus on its higher-end Huawei phones rather than the Honor brand which is aimed at young people and the budget conscious, they said.

The assets to be sold have yet to be finalised but could include Honor’s brand, research & development capabilities and related supply chain management business, two of the people said.

The deal may be an all-cash sale and could end up smaller, worth somewhere between 15 billion yuan and 25 billion yuan, one of the people said.

Digital China, the main distributor for Honor phones, has emerged as the frontrunner but other prospective buyers include Chinese electronics maker TCL and rival smartphone maker Xiaomi Corp <1810.HK>, the people said.

The sources declined to be identified as the talks were confidential.

Huawei and TCL declined to comment. Digital China and Xiaomi did not respond to requests for comment.

The Honor brand was established by Huawei in 2013 but the business mostly operates independently from its parent. It competes with Xiaomi, Oppo and Vivo in China’s highly competitive budget phone market and its phones are also sold in Southeast Asia and Europe.

Kuo Ming-chi, an analyst at TF International Securities, has said that any sale by Huawei of the Honor smartphone business would be a win-win situation for the Honor brand, its suppliers and China’s electronics industry.

“If Honor is independent from Huawei, its purchase of components will no longer be subject to

Blue Origin’s New Shepard Rocket Launches a New Line of Business

West Texas is not quite like the moon. But it can serve as a handy stand-in.

On Tuesday, Blue Origin, the rocket company started by Jeffrey P. Bezos, the chief executive of Amazon, launched — and landed — its small New Shepard rocket and capsule for the 13th time as part of tests to verify safety before any passengers climb aboard.

One day, this will be New Shepard’s main business: flying well-to-do people above the 62-mile altitude generally considered the beginning of outer space where they will experience a few minutes of weightlessness as the capsule arcs.

Blue Origin is not a new company — Mr. Bezos founded it in 2000 — but for most of its existence, it operated in secret without generating much revenue. Three years ago, Mr. Bezos said he was selling a billion dollars a year in Amazon stock to finance Blue Origin’s research and development. And he has declared broad ambitions for its business, such as competing with Elon Musk’s SpaceX and others in the orbital launch business, building a moon lander for NASA astronauts and eventually making it possible for millions of people to live and work in space.

But the cargo of Tuesday’s launch from a test site near Van Horn, Texas, shows that the company is finding a more modest business in the short term: turning the reusable New Shepard rocket and capsule into an effective, and profitable, platform for testing new technologies and performing scientific experiments.

“It was fantastic,” said Erika Wagner, Blue Origin’s payload sales director, who was in West Texas. “We were watching across the valley and watching the rocket climb up.”

Tucked under the collar at the top of the booster on Tuesday’s launch were prototypes of sensors that could help NASA astronauts safely reach the lunar surface

The power of narrative and role of storytelling in business

The Fast Company Impact Council, an invitation-only group of corporate leaders, entrepreneurial founders, and other leaders from across industries, gathered on June 30 to share their insights. Members split into small groups, moderated by Fast Company editors, and shared their perspectives on how they are managing and innovating amid a trio of crises: the global pandemic, the economic slowdown, and calls for social justice in the wake of the killings of George Floyd, Breonna Taylor, and Ahmaud Arbery.

In this roundtable discussion, led by senior editor Amy Farley, top executives talked about how companies build narratives that can resonate with consumers and with employees, and how the role of authentic storytelling and honest communication will be a key tenet of business in the decades to come. Participants in this session, in no particular order, were the executive director of MIT Media Lab Deb Roy, Esri CMO Marianna Kantor, Integral Ad Science CEO Lisa Utzschneider, Nextdoor’s head of marketing Maryam Banikarim, McKinsey partner lead on media and tech teams Jonathan Dunn, and cofounder and chief strategy officer of Good Money Andrew Masanto.

Deb Roy: We’re getting good at casting shadows and having machines that can make out contours or shapes of narratives at different scales, and then putting those two together and understanding (and predicting in some cases) how particular audience segments may respond to different forms of narratives, and different choices—all the way down to specific words and phrases that are chosen, all the way up to the emotional contours of an entire video sequences.

One example is leveraging found data. We’ve been doing a lot of work with Twitter, both the fire hose of hundreds of millions of tweets per day and also the network structure, which lets us understand how people are connected. We’ve actually invested a

How Digital Technology Could Lead The ‘New Business Normal’ In Latin America

Managing Director & Founder of the Biz Latin Hub Group.

The most significant technological advancements that currently shape our society and economy have emerged from challenging times. The internet, for example — without which our daily life as we know it would be possible — emerged in light of the Cold War, after the United States Advanced Research Projects Agency (ARPA) and MIT scientists invented a method to prevent communications from being affected in the event of an attack.

According to the UN, a report from the Economic Commission for Latin America and the Caribbean found that the Covid-19 pandemic is expected to result in the loss of 8.5 million jobs in Latin America and the Caribbean. It has produced new realities through which life and business have managed to get ahead. Digital technology has proven to be the great ally of humanity, facilitating the adaptation of economies and businesses to the “new normal,” a term that is commonly overused and yet mostly still unknown.

Currently, I expect the technology sector in Latin America to grow considerably, as it appears to be a key solution for businesses to evolve with changing social and economic contexts brought about by this pandemic. Technology stands as an industry that could lead the region’s “new business normal.”

The digital revolution is a call for Latin American business resilience.

After governments in the region announced measures to counteract the contagion of the virus, companies of all sizes have reportedly started realizing the importance of digital technology for applications like e-commerce. Technology enables them to adapt to a new business ecosystem in which interacting with clients can no longer be the same.

As I expected, the industries of e-commerce, streaming services, online education and health, food delivery and technological financial services (fintech) have grown