Google and HTC have signed a $1.1 Billion deal where Google will have access to a portion of HTC employees and intellectual property. This agreement seems to be a win-win situation for both parties.
The buying out will help Google fulfil its long-term plans, that is, to build more and more “smart” devices, in-house, equipped with their weaponry.
“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,” Rick Osterloh, Google’s hardware boss, wrote in a blog post.
However, HTC still holds the freedom to operate on smartphone business even after handing out a good pie of its talent and operations over to Google. HTC CEO Cher Wang said that this agreement will “ensure continued innovation within our HTC smartphone and Vive virtual reality business.”
What the HTC Deal Could Mean For Google?
For Google, it means greater control over Pixel smartphones and probably it won’t have to rely on partners to design (not manufacture) its future products.
Over the past decade or so, we have seen Google balancing out its act on both software and hardware front. Google now has its own line of smartphones – Pixel Series, smart speakers – Google home, laptops – Chromebooks and other stuff with their own software running on it.
The deal with HTC will help Google to compete against Apple and Amazon, who has managed to put a brake on Google’s fast-running train of technological innovations into people’s lives.
However, scripting a deal like this isn’t something new for the search-engine giant. Google in 2011, purchased the entire operation of Motorola Mobility for $12.5 Billion, and later sold it to Lenovo for a meager $3 billion.
What this Deal Could Mean For HTC?
HTC has been reeling with competition and this deal with Google will give it legs to continue and focus on the part of its business like Vive VR and Premium smartphone which are doing well for the company.