A few days back, smartphone maker Meizu announced that it will be securing additional finance and will be undergoing management changes in the upcoming days. And now, the company has finally confirmed that it has received funding, but the management has not been restructured.
Back in 2015, Meizu got funded by Alibaba with a sum of $590 million, and now the latest round of funding comes from Zhuhai Municipal Fund. There’s no word on what the exact amount was, but reports suggest that it is somewhere above $14.5 million.
What we do know for certain is that the investor, Zhuhai Hongxin will get a seat on the company’s board. However, there are conflicting reports on whether or not this makes Zhuhai the biggest shareholder of the company, taking current CEO Jack Wong’s place.
Zhuhai Aiding Companies
Zhuhai has been actively supporting the tech industry over the years so it was expected to come to Meizu’s aid. The company plans to invest $10 million annually over the next three years and these investments will go into emerging technologies such as AI. Zhuhai also invested $135 million in a smartphone company called Smartisan two years ago so it could sustain itself.
Hopefully, this new investment will help Meizu stay relevant in the market and brave the tough competition in the future. Nothing can be said for now, but the success of Meizu’s upcoming flagship will certainly be a deciding factor for the company.