Deal involves $1.1 Billion

After reports about Google buying HTC today, as speculated earlier, it turns out that Google and HTC have signed an agreement for Google to improve its hardware efforts.

“With this agreement, a team of HTC talent will join Google as part of the hardware organization. These future fellow Googlers are amazing folks we’ve already been working with closely on the Pixel smartphone line, and we’re excited to see what we can do together as one team.” – Google Vice President for Hardware Rick Osterloh

 The deal involves Google purchasing part of HTC’s mobile division (specifically the “Powered by HTC” R&D division) for $1.1 Billion, along with a non-exclusive license for HTC intellectual property. HTCs CFO Peter Shen notes that the deal will involve 4,000 employees from HTC’s R&D division to join Google. Prior to the agreement with HTC, Google purchased Motorola Mobility for $12.5 billion in 2011, but later on sold it to Lenovo for $2.91 Billion in 2014.

The deal is not surprising, after all: Osterloh cited Google’s previous partnerships with HTC, which include the HTC Dream (aka the first Android smartphone), the Nexus One, the Nexus 9, and last year’s Pixel and Pixel XL.

Google has been aggressive with its hardware efforts lately, with the launch of the Pixel phones, Google Home, and Google WiFi. With this new development, this brings Google a step closer to being a hardware/software company like Apple (with the iPhone and iOS). In addition, this will make Google a formidable challenger against other Android smartphone manufacturers like Samsung, LG, and Huawei.

What are your thoughts about Google bolstering its harware efforts? Comment down below!

Source: The Verge / Engadget

For the meantime, check out our other Google and HTC articles:

Google’s New Pixels Will Be Unveiled On Oct. 4

Google Assistant will soon work as a Translator

HTC To Join Mid-range Android One Bandwagon Via U11 Life

 

Slow and Steady: HTC Preps to Play the Long Game in the Philippines