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Asus, Acer Hint at Possible Merger Talk

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.

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  • moulderhere
    you have got to be kidding me.
    Reply
  • illfindu
    This is going to sound kind of like a joke but there is a large consumer base who probably thinks these are the same companies just said differently. They also make devices around the same price/quality point I think its a good idea.
    Reply
  • hero1
    This is a good idea. They can sell things under one name and give us great products. I say do it.
    Reply
  • teh_chem
    This would seem to be a very one-way deal; I don't see anything that Acer would bring to ASUS, except for further crapification.
    Reply
  • tului
    I'd just be scared Asus would get polluted with Acer's lower quality. Not to mention lack of competition hurting customers.
    Reply
  • DRosencraft
    Yeah... don't really know that this means much of anything positive for Asus. Don't really know that Acer's Chromebook line is as popular as this article suggests. Mergers usually provide enhanced manufacturing and distribution outlets, so that's a positive. And Acer has a lower tier that Asus doesn't while Asus has a higher tier that Acer doesn't, so as one company they could cover both extremes. However, mergers rarely work that well. Just don't know if this is automatically a good or bad idea... lots of details that would need to be worked out.
    Reply
  • whitey_rolls1984
    seems like an odd pairing, thankfully I gave up on Asus years ago due to some terrible motherboards and bad customer service...

    Oddly enough I turned to Asrock (I know ironic) and they've been great
    Reply
  • frankpakdmys
    Rather see Lenovo and Asus merge.
    Reply
  • joaompp
    I guess my next build will probably be EVGA focused, I how this does not come to pass.
    Reply
  • dormantreign
    I'd stop buying asus stuff if this happens.
    Reply