Hubei Xingji Shidai Technology, a Chinese company founded by Geely automaker founder Eric Li, is buying a 79% stake in smartphone maker Meizu. About it report Media citing data from the Chinese State Administration for Market Regulation, a local antitrust regulator. According to these data, Hubei Xingji has agreed to buy shares of two current shareholders of Meizu – the company’s founder Jack Vaughn and Taobao China Software (a division of the Internet retailer Alibaba). The amount of the transaction is not reported. The companies themselves reported that they had agreed on a strategic investment agreement.
Meizu was founded in 2003 and at one time was quite successful, but later lost to competitors such as Xiaomi and Huawei: in recent years, its share in the smartphone market evaluated in 1%. Hubei Xingji, established by Mr. Li in September last year, is supposed to specialize in premium smartphones and other gadgets. The company previously revealed that it plans to launch its first smartphone in 2023. In Geely, commenting on the deal, they note that there is a “close connection in technology” between automotive computer equipment and software for smartphones. “The purchase is likely to be aimed at strengthening the Geely user ecosystem and the development of smart cars,” said IDC analyst Will Vaughn.
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