14 DAY TRIAL // Google will purchase a part of HTC’s team that worked on the Pixel and Pixel XL devices for the measly sum of $1.1 billion.
The Pixel line of devices have been a success for Google, and it’s clear that the company is moving forward in building its own phones, without the help of other businesses. As it stands right now, that might be difficult to achieve from scratch. They lack the manpower and expertise, but they do have a lot of money.
Everyone thought that Google would simply buy HTC when the phone maker announced yesterday that it’s halting all stock transactions. A takeover seemed imminent. It turns out that Google doesn’t really need the entire company, but only the people working for it.
It’s like buying your own sports team
Google decided to buy just the “Powered by HTC” team, which worked at the Pixel and Pixel 2 devices. It seems a little odd to buy just the people and not the company, although this is something that happens in sports all the time. All in all, about 2000 employees will move from HTC to Google.
What’s even more interesting is that HTC will continue to make its line of flagship phones and that Google also made a non-exclusive license deal for various patents.
“HTC will continue to have best-in-class engineering talent, which is currently working on the next flagship phone, following the successful launch of the HTC U11 earlier this year,” reads the announcement from the company.
Partnership with Valve is intact, for now
HTC also specifically mentioned their VIVE virtual reality business, which is developed in collaboration with Valve, and said that it’s not going to be affected, although it might be the kind of statement that should not be needed. It was most likely for the benefit of the shareholders.
Despite its good name and the success of their previous devices, the HTC Corporation was going through a difficult period, and it was operating at a loss so that this deal will get them a lot of cash quickly, without losing their independence.
If everything goes well and the acquisition is approved, the deal should be closed by early 2018.