According to a new report, well-known Chinese automotive company, Geely is planning to buy a local smartphone brand. According to insiders close to the situation, the smartphone brand in question is Meizu.
Multiple sources have claimed that the Geely group is now in talks with Meizu about a possible takeover, according to a 36kr report.
The Chinese firm has been eyeing the mobile market for some time, and has set up a separate subsidiary named Xingji Times to focus on it. To further its efforts, it nabbed top executives from ZTE, Xiaomi, and Oppo.
According to the source, Geely has already committed about CNY10 billion ($1.5 billion) in this new venture, not considering the price of acquiring Meizu. Both sides’ have declined to comment on the situation.
Although Meizu has been on the slide in recent years, the acquisition may bring about reforms that would help it regain market share. Keep in mind that this is still a speculation, so stay tuned for additional information.