HTC Share Holders Jump Ship This Morning, Steve Jobs Laughs Maniacally
HTC stockholders are running for this hills this morning in reaction to the International Trade Commission's Ruling that the company violated two patents held by Apple.
In other reports maniacal laughter could be heard emanating from Steve Jobs' mansion.
HTC shares dipped nearly 6.5% this morning cementing the free-fall the companies shares experienced last week. To help stop the bleeding HTC announced a $760 million share buy back program which the company hopes will help stabilize the companies stock price and restore investor confidence. According to Financial times the program "appeared to have little affect as the stock fell below HTC's minimum purchase price."
HTC recently acquired S3 graphics for $300 million in part to secure a number of patents to protect the Taiwanese company from Apple's legal team. The ITC actually ruled in favor S3 in a suit against Apple earlier this year. HTC purchased a patent portfolio from ADC communication for $75 million in addition to signing a Android protection pact with Microsoft.
Unless HTC can reaches a settlement with Apple, or the ITC ultimately rules against an outright ban of their products in the U.S. the companies stock could plummet further, and risk becoming the first casualty in this all out telecom patent war.
Source: Financial Times