Google takes key Assets of HTC for $1.1 Billion
Alphabet Inc.’s Google have announced an deal with HTC aimed at boosting hardware projects with the help of key Taiwanese company resources. The $1.1 billion deal in cash will lead Google to take licenses for a different intellectual property of HTC, as well as practically use the entire team behind Pixel smartphones.
This move is part of Google’s new hardware strategy and the giant will try to fix the mistakes made when buying Motorola’s mobile business some time ago. Then the copmany paid $12.5 billion, and less than three years later, Lenovo bought it for just $2.9 billion.
With this deal, Google will manage the entire engineering team who is familiar with the Pixel devices, has experience and proven presence – all this just for a small part of the price paid by the giant in the previous similar deal.
The deal will be finalized by the beginning of 2018. HTC was the logical choice for Google, as the two companies have been partnering for many years, and it was the HTC that developed the first Nexus device in 2010.
The deal shows “Google is very serious about building its own hardware,” said Jan Dawson, chief analyst at Jackdaw Research. Google has made an aggressive push into hardware over the past 18 months, including its Pixel efforts, a voice-controlled home speaker and a virtual-reality headset.
Google doesn’t disclose its hardware-sales figures, but the segment that includes the business grew by 42% to nearly $3.1 billion in the second quarter from a year earlier. That segment also includes its fast-growing cloud business.http://gizbrain.com/2017/09/21/google-buy-key-assets-htc-1-billion/https://i0.wp.com/gizbrain.com/wp-content/uploads/2017/09/Google-Pixel-Smartphone.jpg?fit=960%2C622https://i0.wp.com/gizbrain.com/wp-content/uploads/2017/09/Google-Pixel-Smartphone.jpg?fit=210%2C136GOOGLEHTCTECH NEWSGoogle,Google Pixel,htc,smartphoneAlphabet Inc.'s Google have announced an deal with HTC aimed at boosting hardware projects with the help of key Taiwanese company resources. The $1.1 billion deal in cash will lead Google to take licenses for a different intellectual property of HTC, as well as practically use the entire team...John GreenJohn GreenJohngreen@gizbrain.comContributorJohn Green is a writer at GizBrain.GizBrain - Your Tech Brain