ASUS Plans to Split, Go Public

@ 2005/11/28
ASUSTeK Computer, currently one the world’s largest makers of mobile computers, mainboards and other computer components, may be gearing up for restructuring of the company. According to a report, ASUS is expected to spin off its ASUS-branded business and concentrate on operation as a manufacturing company. The spun off unit of the company will aim to go public in the U.S.

A report over DigiTimes web-site that cites Apple Daily news-paper claims that ASUSTeK’s own-brand operation is expected to turn into a new independent company, which will set up a headquarters in Singapore and will aim for listing on the New York Stock Exchange (NYSE) in the future, according to the sources. The parent company will concentrate solely on manufacturing of hardware and components.

Earlier it was reported that ASUS would spin off its wholly-owned subsidiary Asusalpha Computer which deals with manufacturing.

ASUSTeK reportedly declined to comment on such rumours, but based on the fact that there were at least two reports about possible restructuring of the company, the possibility that there is something going on at ASUS are fairly high.

For years ASUS’ business has been moving into different directions: on the one hand the company’s mainboard, notebook and graphics cards products were getting more and more popular. The company even plans to start making LCD TVs under its own brand-name, which again confirms that an ASUS’ strength is its famous trademark. On the other hand, the company has been very successful manufacturing products for companies like Apple Computer, Sony Computer Entertainment Inc. and others. As two independent companies the manufacturing and brand-oriented businesses are likely to be more successful than as fully integrated company.

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