Google completes $1.1B deal to buy a chunk of HTC’s smartphone division

(Last Updated On: May 16, 2018)

Google completes $1.1B deal to buy a chunk of HTC’s smartphone division

Google has announced the completion of its $1.1 billion deal to buy a large slice of HTC’s hardware business.
In September 2017, this acquisition was announced. But now it has passed the requisite approvals and is finalized. Beyond the transfer of over 2,000 engineers from HTC that’s around one-fifth of HTC’s engineering team. From this team, Google will also receive a non-exclusive license for HTC’s intellectual property. HTC is retaining its Vive VR division. It will continue to make its own smartphones, the company confirmed last year.
Founded in 1997, HTC began as an original design manufacturer and original equipment manufacturer, designing and manufacturing laptop computers. 
Most obviously, the deal boosts Google’s hardware game significantly by handing a portion of HTC’s own smartphone development team. Many of whom worked on Google’s Pixel hardware and other HTC devices which were much lauded didn’t sell in huge volumes.
Secondly, it gives Google a vast new engineering base in Taipei, Taiwan, where HTC is located. That makes the location the largest engineering site for Google in the Asia Pacific. And it is likely to be the source of new products from the company going forward.
“I’m delighted that we’ve officially closed our deal with HTC, and are welcoming an incredibly talented team to work on even better and more innovative products in the years to come,” Rick Osterloh, Google’s senior VP of hardware, wrote in a blog post and this has been reported by TechCrunch.
“These new colleagues bring decades of experience achieving a series of “firsts” particularly in the smartphone industry including bringing to market the first 3G smartphone in 2005, the first touch-centric phone in 2007, and the first all-metal unibody phone in 2013,” Osterloh added.
google htc phone
The closure of the deal marks another notable development for Google’s business in Asia in recent months.
The company announced plans to open an AI lab in Beijing, its first such location in China.  It is also opening a base in Shenzhen. Shenzhen city is seen as the world’s ‘Silicon Valley of hardware.’  Google turned investor, putting money into Chinese streaming service Chushou. This uses AI and machine learning to help design drugs, and Indonesian ride-hailing service Go-Jek.

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