The rumours got the thumbs up from investors.HTC's shares reportedly went up by 5.30 per cent when word of the rumor broke out.  Uncharacteristically, HTC immediately made a statement to refute the rumors and officially declare them pants..

So it is not spinning off a virtual reality business, it will "continue to develop our VR business to further maximize value for shareholders.".Nothing to see here move on please.

But like many rumours, this particular one made a lot of sense. It would have helped HTC grow the VR buisiness while at the same time shielding it if it failed to take off. It could be that HTC is waiting to see how well the VR market will perform in the next year before trying that trick. Everyone claims VR will take off but there is still a lot of unknowns.  At the moment there is not a lot of software out there and the headsets cost an arm and a leg. 

HTC's VR headsets will be used for more than just entertainment, like in education and medicine and it could be a huge money maker for the company.  But spinning out its VR business would have shielded  HTC from any fallout if it all went pear-shaped. Clearly HTC does not see the point.