According to this person, the companies have finalized a deal wherein GOOG will acquire certain HW eng assets, but HTC retains its brand
— Evan Blass (@evleaks) September 20, 2017
What did Google acquire?
Google officially announced that it has purchased HTC’s “Powered by HTC” research and development division for $1.1 billion (Dh4.04 billion). The deal is said to be finalised and closed by early next year.
What is Powered by HTC?
The Powered by HTC team was roughly half of the Taiwanese tech brand’s R&D department. That means roughly 4,000 people who had been working on the Pixel and Pixel Xl will now be formally part of Google.
What else does Google get out of the deal?
Google also walks away with a non-exclusive license for HTC’s intellectual property, which is useful for future device development.
The acquisition gives Google no access to manufacturing facilities nor to HTC’s Vive VR business.
Is HTC out of the smartphone business?
Not at all. “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,” said Cher Wang, Chairwoman and CEO of HTC. “We believe HTC is well positioned to maintain our rich legacy of innovation and realize the potential of a new generation of connected products and services.”
HTC has no intention of exiting the market and will continue to develop its own smartphones.
How does this deal benefit customers?
- We can expect better devices from both companies following this agreement.
- HTC can use this money to stay afloat in an intensely competitive market.
- Definitely much more from the HTC Vive.