Andy Rubin considers selling Essential after cancelling new smartphone

Essential Products Inc., a startup co-founded by Android creator Andy Rubin that launched last year to great fanfare, is considering selling itself and has canceled development of a new smartphone, according to people familiar with the matter.

The startup has hired Credit Suisse Group AG to advise on a potential sale and has received interest from at least one suitor, the people said. Essential is now actively shopping itself to potential suitors, one of the people said. The startup, part of Rubin’s incubator Playground Global, has raised about $300 million from several investors, including Amazon.com Inc., Tencent Holdings Ltd., and Redpoint Ventures. It was valued at $900 million to $1 billion about a year ago, according to an analysis by Equidate, which runs a market for private company stock.

Essential has also received investments from Hon Hai Precision Industry Co., also know as Foxconn, the company’s manufacturing partner for its

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