The two Shihs talk about a possible merger of Asus and Acer.
China Times reports that a possible merger between Acer and Asus, the "double A" in the Asian press, could happen in the future. The news arrives by way of Asus Chairman Johnny Shih who answered a question about a merger of the two companies, stating that while the industry is going through a transition period, companies should keep "an open mind" about these possibilities.
Mergers and acquisitions are the latest fashion trend in the electronics industry as of late, with Google scooping up Motorola Mobility and Microsoft buying Nokia's Devices and Services division. Typically, the Asus Chairman talks about organic growth within the company, but now he may feel more compelled to reach outside the box for ways to bolster the company's portfolio of products.
Acer founder Stan Shih also chimed in on the question, stressing that for any acquisition/merger to happen, both parties must examine the deal thoroughly. The deal must provide maximum benefits to all relevant stakeholders for both companies, including employees and shareholders. The companies must also determine how a merger/acquisition will affect the industry and consumers. If such a move will create a greater value in Acer, the company would agree. If not, then Acer would reject the offer and continue on as usual.
What's interesting here is that both Shihs are not dismissing questions in the typical "we don't comment on speculation" executive manner, but are openly talking about the possibility. That said, where would Acer's lineup of hardware and devices fit within the Asus portfolio? Acer seemingly focuses on the more mainstream consumer market with tablets, desktops, AIOs and notebooks, whereas Asus is more on the high-end market while also offering motherboards, graphics cards, sound cards and more.
If anything, the merger/acquisition could mean Acer would have access to premium hardware manufactured by Asus, whereas Asus would have access to Acer's highly popular Chromebook line. Of course, all this is mere jabber at this point, but shareholders are reportedly interested in such a transaction, as Asus shares rose 1.69 percent and Acer shares rose 0.5 percent after the China Times article was published.