Google Closes Acquisition Of HTC's Design Division In A US$1.1 Billion Deal
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Indicating the tech giant’s commitment to strengthen its hardware endeavor, and stepping up to compete with market leaders Apple and Samsung, Google has officially closed its US$1.1 billion deal with HTC Corporation. According to Google’s Hardware Senior Vice President Rick Osterloh in a blog post, they’re keen to “[be] welcoming an incredibly talented team to work on even better and more innovative products in the years to come.” While noting Google’s launch of its second-generation Made by Google products including the Google Home mini and Pixel smartphones, Osterloh states that building hardware is hard.
The deal involves certain HTC employees in its hardware department, many of whom who are already working with Google to develop Pixel smartphones, to join Google. Also, Google would be receiving a non-exclusive license for HTC’s intellectual property to support the Pixel smartphone line. With Google’s hardware business in its third year, the company is “committed to building and investing in the long run,” and hopes to combine HTC’s hardware know-how with the best from Google’s AI, software and hardware. As for HTC, according to a release, the deal supports HTC’s smartphone strategy for a more streamlined product portfolio, greater operational efficiency, and financial flexibility. With the new employees remaining in Taiwan, making it an innovation and engineering hub for Google, it also denotes Google’s support to Taiwain’s tech ecosystem.
The closure of the deal marks Google's increasing business development across the Asia Pacific region. The company announced its plan to open its first AI lab in Beijing, China, in addition to a base in Shenzhen, seen as a center for hardware development.