HTC and Google announced that they have reached a succulent agreement, where Google will pay HTC 1.1 billion dollars (841 million euros) in exchange for having access to the Intellectual Property of HTC together with a total of 2,000 engineers.
Some HTC employees, many of whom are currently working with Google to develop Pixel phones, will join Google. In addition, Google will receive a non-exclusive license for HTC’s intellectual property. This means that Google will have access to HTC manufacturing patents and the designs of their future Pixel devices, or in other words, complete freedom to choose both the software and the hardware that will integrate their devices.
“HTC has been a Google partner for a long time and has created some of the most beautiful and premium devices on the market. We are excited and can not wait to welcome HTC team members who will join Google to drive innovation and future product development in consumer hardware, “said Rick Osterlog, Senior Vice President of Hardware at Google.
The transaction will help HTC to develop its next smartphone flagship (on the way), while demonstrating Google’s commitment to the future of Pixel’s family of devices. The agreement will also help to strengthen and streamline the portfolio of Google Pixel. The transaction also introduces Google to a new technology center of HTC in Taiwan. The agreement is still waiting to be approved by regulatory officials, hoping to finalize it in early 2018.
This is the second time that Google has made a big purchase involving a smartphone manufacturer. Six years ago, Google announced a $12.5 billion buyout of Motorola Mobility. “Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers everywhere,” said then-Google CEO Larry Page.