Google is buying part of HTC’s smartphone team for $1.1 billion. The company has just confirmed that it plans to acquire part of HTC’s mobile division team for $1.1 billion. The deal also includes a non-exclusive license for HTC intellectual property.
Who is the winner? HTC got the cash for now and Google bought the Future. Let me tell you why.
Why did Google made the decide and to act such a deal? Currently, in the Android market, Samsung reigns as absolute strong. LG, Huawei companies, etc. account for a small proportion.
Google puts the Android platform in front and has absolute power. However, there is a limit to the software power which hardware is missing. While watching Apple rival, it is preferable to have such an idea.
However, they could not buy 100% due to its failure in Motorola.
Even though HTC hands over its HR resources to Google, the company still has about 2,000 researchers and designers. Moreover, they are still developing their own smartphone device.
Since last year Pixel Phone has been released, Google’s “smartphone hardware” ambition has continued to grow. The deal with HTC should be viewed as a move to that part.
It has exceeded $ 1.1 billion in cost of securing smartphone development and design experience and shielding against patent offensive. It is a big money in itself, but it is understandable enough considering the size of Google.
HTC, on the other hand, is able to squeeze breath while receiving cash from Google. HTC, which once dominated the smartphone market but has been sluggish recently, has been selling its related businesses.