Google is making another huge purchase into mobile hardware. The company is buying the people responsible for creating smartphones in HTC.
Google has just confirmed that it is planning to gain portion of the smartphone division team of HTC for around $1 billion. According to the hardware boss of Google, those people are great individuals they have been already working closely with on the Pixel phone line. They are excited to find out what they could do together as a team. Also, the contract includes a non-exclusive license for the intellectual property of HTC.
What Will Happen to HTC?
According to the chief financial officer of HTC, Peter Shen, the company would still hire 2,000 design staffers and researchers after the contract is complete. This means that this announcement is more like an acquirement of talent instead of the old-style acquisition of resources.
HTC would not stop and would continue its own mobile business even after selling a great part of its operations and talent over to Google. According to the CEO of HTC, Cher Wang, The deal would make sure constant innovation within the Vive VR business and HTC phone. In fact, the press release of the company unveils that HTC is already preparing actively for the next smartphone.
Google’s Big Purchase
This is the 2nd time that Google has made a huge buy involving a mobile producer. 6 years ago, the company announced a $12 billion buyout of Motorola Mobility. Then-Google CEO Larry Page said that they would together make amazing user experiences that supercharge the whole ecosystem of Android for the developers, partners, and customer’s benefit everywhere.
Motorola built a US plant under Google. It gave unrivaled customization choices for the Moto X phone. However, Google has soured on their acquisition of Motorola by January 2014 and reached a contract to sell off the company to Lenovo for a portion of what it had paid originally.
The Motorola contract was viewed as a gateway for Google to acquire valued copyrights at a time when the trial was often breaking out in the industry of technology. However, it is still hard to call the entire thing a success in retrospect.
Google carried on with the Nexus program by associating with smartphone manufacturers after the Motorola experiment. The program is to release handsets that ran the preferred Android operating system of the company.