In January of this year, rumors surfaced that Chinese automaker Geely was planning to acquire the local smartphone brand. Sources close to the matter were talking about Meizu.
Now, the rumor has been confirmed as the Chinese regulator has officially announced that Geely’s Hubei Xingji Times Technology will acquire shares in Meizu Technology.
Meizu is currently controlled by Huang Xiuzhang and Taobao China Software Company with 49.08% and 27.23% respectively. Geely plans to sign an agreement to acquire a 79.09% stake in Meizu.
If the deal goes through, Huang Xiuzhang’s stake will drop to 9.79% and Taobao China will exit the enterprise entirely. A 79.09% stake in Geely would give the automaker control of the Chinese technology company.
It is worth noting that recently things have not been going well for Meizu. I wonder what Geely will do.