In line with reports, the Google-HTC deal is official, albeit not in the way we previously thought. In a deal worth $1.1 billion, Google will be acquiring a part of HTC s mobile division. Along with it, Google will also be getting a non-exclusive license for HTC intellectual property (IP) . The transaction is expected to close by early 2018. Also Read - Google will not store your bank card details from January 1, 2022: Here’s how it will impact youAlso Read - Google now lets you access an entire library of books with this new feature
HTC has been a longtime partner of Google and has created some of the most beautiful, premium devices on the market, Rick Osterloh, Senior Vice President of Hardware at Google said. We’re excited and can’t wait to welcome members of the HTC team who will be joining Google to fuel further innovation and future product development in consumer hardware. Also Read - Google adds 3D monuments to AR Search results: How to use
Our unmatched smartphone value chain, including our IP portfolio, and world-class talent and system integration capabilities, have supported Google in bolstering the Android market, Cher Wang, Chairwoman and CEO of HTC said.
Despite the deal, the press release says that HTC will continue with its own smartphone business. In fact, the company says it is actively preparing for its next flagship device launch. This agreement is a brilliant next step in our longstanding partnership, enabling Google to supercharge their hardware business while ensuring continued innovation within our HTC smartphone and VIVE virtual reality businesses, Wang said.
This isn t the first time Google has made such a big acquisition in the hardware space. Around six years back, the search giant bought Motorola Mobility for a whopping $12.5 billion. While this acquisition led to the launch of the highly customizable Moto X smartphone, it was largely seen as a failure. In 2014, Google sold Motorola.
But this time around, Google is far more serious about its hardware as is evident from its Nexus and more recently the Pixel lineup. In that sense, the Google-HTC deal makes a lot of sense, because their partnership goes back to the very first Android smartphone HTC Dream aka G1. Since then, the companies have worked together on the Nexus One, Nexus 9 tablet, and last year s Pixel and Pixel XL smartphones. With HTC s smartphone team onboard, Google will now be able to better compete with the likes of Samsung, LG in the premium segments. This is also seen as a step towards achieving the kind of hardware/software synergy Apple is known for.
We re excited about the 2017 lineup, but even more inspired by what s in store over the next five, 10, even 20 years, Osterloh wrote on the Google blog. Creating beautiful products that people rely on every single day is a journey, and we are investing for the long run. ALSO READ: Google Pixel 2 billboard in Boston hints at an October 4 launch