Huawei is proposed to sell Honor for $15 billion to Digital China and Shenzhen Government

Huawei is planning to sell its branded unit Honor for 100 billion. There have been reports that Huawei has been facing problems due to the supply constraints arising out of US sanctions. As a result, considering the whole supply scenario, Huawei has pondered over the matter to finally come up with this step. The movement has rightly put a lot of constraints on its chip supply and if it generates a budget, then it will further add to the pressure as well. 

The sanctions can potentially break the bone of any entity as it has series of things which won’t be allowed, This has always become a prime reason for companies not able to flourish or do their work peacefully due to the whole scenario arising out of sanctions. 

The move comes in the wake of how there has been a change in the US leadership. Although, Huawei isn’t relating to any immediate measures, due to the change in the leadership, yet one thing seems to be sure, that the risks which are associated may still be in place with Joe Biden taking over. 

As the deal finally lands to its final closure, Honor is going to keep most of its management under itself and there will be whopping 7000 employees under him. It is also expected that it is going on a public domain within the next three years, if the source is to be believed. However, Huawei is still not fully comfortable in discussing or disclosing more about the matter. While at the same times, Shenzhen Government as well as Digital China are yet to respond on the matter, as they haven’t done as of now. 

Let’s have fingers crossed till then.