Huawei could sell Honor for 100 billion yuan

Under pressure to step up the U.S. ban, since April this year, there have been reports that Huawei may be spinning off Honor. Earlier today, Reuters received the latest developments from whistleblowers. According to their reports, Huawei could sell Honor to mobile phone distributor Digital China and a Shenzhen government-led consortium for a price of 100 billion yuan. Upon completion of the transaction, the new Honor will retain the original brand, R&D department and supply chain resources.

In addition to the Reuters news, some media had previously claimed that the buyer of Honor would be made up of Digital China, three state institutions, and a minority shareholder group led by TCL. As for related news, Digital China, which has been quoted often, previously said that “we will not respond to rumors”. Indeed, there are divergent opinions on the recipients of the Honor. Following the release of the Reuters report, The Paper also said it learned from people familiar with the transaction that participation in the transaction will also include partnerships formed by a number of Chinese distributors, including companies with state-owned assets.

Theoretically, Honor is expected to be immune from the US government’s ban on Huawei after it is separated from Huawei (possibly further preparations for listing in the future). But that’s just a theory ultimately, and there’s still a chance the US will insist on targeting Honor and Huawei together.