Google pays $1.1b for HTC staff and IP

Gwen Vasquez
September 22, 2017

That's now happened with the company entering into an agreement with Google which will see certain HTC employees move to the tech giant in a $1.1 billion Dollars agreement. Besides, HTC will also provide Google a non-exclusive license for HTC Intellectual Property (IP) as apart of the agreement.

Google has struck a $1.1 billion with Taiwanese smartphone manufacturer HTC to acquire the team working on its Pixel range of devices.

Specifically, the two companies have inked a definitive agreement that sees certain HTC employees, many of whom are already working with Google to develop the company's Pixel smartphones, join Google.

Google owns and runs the world's biggest smartphone operating system, Android, with around an 85% share of shipments in Q1 2017, according to IDC. "HTC will also continue to build the virtual reality ecosystem to grow its VIVE business, while investing in other next-generation technologies, including the Internet of Things, augmented reality and artificial intelligence".

"That's why we've signed an agreement with HTC, a leader in consumer electronics, that will fuel even more product innovation in the years ahead", Osterloh wrote. HTC was happy with its last U11 phone and its performance and the money it receives from Google will definitely help the financially shaky entity.

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That partnership saw the construction of a manufacturing plant in the United States and "offered unrivalled customisation options for its flagship Moto X smartphone", the website says.

This agreement supports HTC's branded smartphone strategy, enabling a more streamlined product portfolio, operational efficiency and financial flexibility. Rick Osterloh, who led Motorola while it was part of Google, is now leading Google's hardware division. That news is no longer a rumor as Google officially announced that it has purchased HTC's "Powered by HTC" research and development division for $1.1 billion. The partnership continued with the Nexus 9 tablet in 2014 and the first Pixel smartphones that were launched a year ago.

Google indicating that it wants to make its own hardware, from home speakers to phones.

Just as expected, Google and HTC have struck a deal.

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