All it took was $1.1 Billion to have a part of HTC for Google
The rumors of Google purchasing HTC has been interfacing from time to time. And the fact Google would would purchase a Taiwanese company with falling reputation is nothing new. The rumors are no longer rumors with Google officially announcing to have bought the HTC’s “Powered by HTC” research and development division for $1.1 billion.
HTC’s “Powered by HTC” wasn’t a small division either. It comprised of half of HTC’s research and development team. The same division was also behinf the development of Pixel and Pixel XL. The deal also gives Google Non-exclusive rights to HTC’s intellectual property which might surely come in handy in the upcoming years.
What it means for HTC?
Countering to the rumors this doesn’t mean Google bought HTC as a company. It just bought one of it’s division. HTC will stay in the smartphone market and continue development of smartphones. According to HTC’s CFO(Chief Financial Officer) Peter Shen, the Taiwanese outfit will continue to exist as an independent company and develop its own smartphones, including the company’s next flagship.
Due to the same reason, the deal doesn’t provide Google access to HTC’s manufacturing units. It only grants access to HTC’s employees and patents. This will enable the company to create their own smartphones with their own SoC’s while the later is just a possibility.
Per Google senior vice president of hardware Rick Osterloh:
That’s why we’ve signed an agreement with HTC, a leader in consumer electronics, that will fuel even more product innovation in the years ahead.
As for HTC, the $1.1 Billion deal surely will give them enough funds to stay afloat in the smartphone and VR worlds as the company’s profits dip. According to press statement by HTC the deal provides them with “a more streamlined product portfolio, greater operational efficiency and financial flexibility.”
The deal will surely give HTC enough resources financially to stay afloat for a few more years. And as of Google it will enable them to make their own phones possibly with the fuchsia os. The deal is expected to be done by the early 2018.