Google buys half of HTC RnD for 1.1billion USD
I fell back in love with HTC’s hardware back with the One M8. It seems that Google loves it too, to the tune of $1.1 billion.
HTC has announced that its “Powered by HTC” R&D division, those behind Google’s Pixel and Pixel XL smartphones, will be bought by Google for $1.1 billion.
This is seemingly part of the search giant’s new hardware strategy. Remember when it acquired then seperated from Motorola?
According to HTC’s CFO Peter Shen, this will mean about half of the 4,000 people in his company’s R&D team will be joining Google. That’s quite a migration.
However, Shen did say that that HTC will continue developing its own range of smartphones, including its next flagship product.
The agreement also grants Google a non-exclusive license for a large part of HTC’s intellectual property. The deal is expected to be approved and closed by early 2018.
The Taiwanese company has focused increasingly on its emerging VR business, which includes the awesome HTC Vive headset. Additionally, it still cobbles its own smartphones too. Most recently, the U11 has received much praise.
Google HTC deal
The deal between Google and HTC will see the latter company retain its branding, but Google will take over some of its hardware engineering resources. This should help it own even more of its device-making process.
Google had stepped back from in-house hardware after selling its Motorola unit to Lenovo. However, it has recently re-engaged on that front with a different approach focused on premium smartphones, as well as accessories and smart home and connectivity devices like Google WiFi, and Google Home.