Android creator Andy Rubin has cancelled the production of a new smartphone under the Essential brand and is considering selling the start-up, according to a report.
Bloomberg has cited “people familiar with the matter” claiming the company has already hired Credit Suisse to advise on a possible sale. At least one potential buyer is said to be interested.
It’s somewhat surprise news for a company that had raised $300 million from the likes of Amazon and Tencent. Essential had at one point been valued at around $1 billion.
Essential and Credit Suisse declined to comment on the news.
Rubin however reacted to the report on Twitter, stating: “We always have multiple products in development at the same time and we embrace canceling some in favour of the ones we think will be bigger hits. We are putting all of our efforts towards our future, game-changing products, which include mobile and home products.”
Despite raising significant sums of money, Essential has an uphill battle competing in the mobile hardware space that includes giants like Apple, Samsung and Google.