If ASUS wants to purchase HTC, then it's going to have to dig in for a fight - because HTC doesn't have any interest in being acquired.
Here is what HTC said in a public statement: "We strongly deny the news. We didn't contact ASUS and will not consider the acquisition. As an international brand, HTC will continue to design world-class innovative smart devices through its pursuit of brilliance brand promise."
As Samsung, Google, Huawei, Lenovo and other manufacturers find success in releasing Android-based smartphones, HTC - which once enjoyed comfort in the evolving smartphone market - has struggled in recent quarters. To make matters worse, the Apple iPhone is seeing strong demand in China, a market that HTC once was able to fall back on.
If HTC doesn't want to be acquired by ASUS, expect the struggling company to try to branch out into connected devices and standalone cameras. It's going to be a tough uphill battle for HTC, but we'll see what happens throughout the rest of 2015.