February 08, 2011

HTC to Expand Software Business by Acquiring Saffron Digital


HTC, a leading smartphone maker in Taiwan currently lauded as a global leader in mobile innovation and design, is looking to take its influence a step farther by expanding its software business.

On Tuesday, the company announced its plans to acquire the British digital multimedia company, Saffron Digital, and invest in a United States online gaming firm. Saffron Digital, a global mobile delivery platform company whose products and services reach 26 countries, in 14 languages, was bought  for 30 million pounds ($48 million), or 6.16 pounds per share.

 “Saffron Digital has developed an incredible expertise in mobile multimedia delivery,” said Peter Chou, CEO of HTC (News - Alert) Corporation, in a statement. “This ability to deliver optimized content in the future will be a key asset as content becomes more and more complex and localized. We are excited to be working with Saffron to increase our global service delivery capabilities and expertise.”

 HTC will also spend $40 million on 5.33 million preferred shares in the OnLive Inc, HTC said. HTC did not state how big its share in the company would be after the acquisition.

HTC is not the only company reaping benefits from the acquisition, however.

“HTC’s investment increases our global expansion capabilities and provides us with an opportunity to expand into new markets like Asia and new sectors like games and music delivery,” said Shashi Fernando, CEO of Saffron Digital. “We have grown Saffron Digital into one of the best and most exciting digital service providers in the world and this enables us to take digital content delivery to a new level for our customers around the world.”

Saffron Digital will continue to be headquartered in London and Los Angeles and its management team will continue, unchanged. The company will also still provide its media and content services to its third party partners, which include device manufacturers, network operators and content providers in 26 countries.

HTC also announced today that it had agreed to take 5.33m preferred shares in US OnLive, a start-up focused on cloud video game services, for USD39m (EUR29m), in a move to increase its sector portfolio.


Carrie Schmelkin is a Web Editor for TMCnet. Previously, she worked as Assistant Editor at the New Canaan Advertiser, a 102-year-old weekly newspaper, covering news and enhancing the publication’s social media initiaitives. Carrie holds a bachelor’s degree in journalism and a bachelor’s degree in English from the S.I. Newhouse School of Public Communications at Syracuse University. To read more of her articles, please visit her columnist page.

Edited by Carrie Schmelkin