Slash of the titans
The people who founded ASUS were, for some reason, obsessed with legendary winged horses. For this reason they took the last four letters from Pegasus as the name for their own-branded operations and the first four for their ODM side - Pegatron.
This clever wordplay doesn't seem to have fooled anyone, however, and its thought that Pegatron's association with ASUS has hindered its ability to win white-label manufacturing business from other vendors.
So ASUS has decided to spin-off Pegatron such that it only owns 25 percent of it, with the remaining 75 percent going to ASUS shareholders. There are all sorts of financial mucking about involved, but the slide below summarises the move, to some extent.
Pegatron will continue to compete with the likes of Hon Hai in manufacturing components and complete systems for other vendors. They will no doubt include ASUS. Pegatron plans to undergo an IPO sometime next year.
