As mentioned in a previous post, WiFly, the Taipei-centric wireless Internet provider, is struggling in slow uptake mode. So what better to do than to seek a suitor? Rumor has it that ChungHwa Telecom has been considering purchasing a controlling stake in WiFly's parent, Q-ware Systems (which is in turn a subsidary of Uni-President, which operates 7-11, Starbucks and seemingly half the other companies in Taiwan). Now comes more buzzing that FarEasTone [disclosure: My company does some research work for this company], Taiwan's #2 mobile operator, is also interested (Taipei Times), so says the article. But rumors are just that--rumors. And I'm not really playing inside baseball here and there very well may be things I don't know. But honestly, this doesn't look like the best direction to take.

While, as stated in the article, this may open up more subscribers for FET to tap... something or other, lately, Taiwan companies haven't been making the best long-term strategic acquisitions. Just note the BenQ-Siemens debacle.

I have one rule of thumb in life for investing, gambling, hiring, relationships, etc.: Never back a loser.

Note to FET: This dog don't hunt.

More to come.
-jag

 

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