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HTC to invest $35 million in Magnet Systems, will focus on enterprise apps
HTC has made some bad investment decisions in the past year, with the latest being its $40 million investment in OnLive, which was wiped out after the on-demand games company sold its assets. Not discouraged by the many setbacks, the latest venture sees the Taiwanese betting its money on software developer Magnet Systems.
The company announced that its next strategic move is to purchase a 17.1% share in Magnet for $35.4 million, in the hope that it will help expand the company’s enterprise user base. “The investment will bring social, mobile, and cloud capabilities to HTC’s portfolio of service offerings to its mobile enterprise customers,” HTC said in a statement.
The US-based Magnet Systems, according to HTC, is a platform builder for next-generation enterprise applications and one that has extensive experience in platform development for the enterprise market. HTC is hoping that its investment will pay off in the coming years, as more corporations are expected to buy and build cloud-based applications and services.
Gartner analyst CK Lu said that HTC is trying to fill the gap that Blackberry has left in the mobile enterprise world, as the once mighty RIM rapidly finds itself being abandoned by the market. “We believe major Android and Windows Phone players are investigating such an opportunity and HTC’s recent investment in Magnet Systems will help the company to move towards that direction.”
HTC hasn’t had much success with its investment in the consumer market. Given its dire financial situation, we sincerely hope that the company will find better luck in the enterprise space.