HTC was forced to deny it is going to spin out its virtual reality business

HTC ViveStuff MagazineThe HTC Vive headset.

HTC has been forced to deny reports by local Taiwanese media that it would spin out its virtual reality business.

In a statement to investors, the company denied “media reports in Taiwan” that “Cher Wang [the chairperson of HTC] is planning to spin off HTC’s VR operations into an independent entity that will be wholly owned by Wang.”

According to HTC, the company will “continue to develop our VR business to further maximise value for shareholders.”

HTC’s smartphone business has taken a serious hit over the past few years, after initially showing potential, and the company’s stock is currently trading below the amount of cash it has one hand (which, mathematically, makes HTC worth less than zero).

However, the company has been building the HTC Vive, a virtual reality headset, that shows promise. Unlike the Oculus Rift, the Vive can be moved around a room and has a camera that can overlay outside images into the VR experience.

According to Goldman Sachs, virtual reality is about to take off and could be bigger than TV within 10 years.

NOW WATCH: This new phone crushes the iPhone in one key area

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.