- For this deal, Google will pay $1.1 billion in cash
- After the deal, Google will also receive a non-exclusive license for HTC intellectual property
- The team of HTC who have worked on Pixel smartphone will also be under Google
Google declared about the agreement done with HTC between them on Thursday. It is a $1.1 billion agreement with the HTC in order to boost the hardware side of the Google. Google is not acquiring the whole company, they will get the HTC’s team who has already worked on the smartphone Pixel. In terms of the transaction, HTC will get a heavy amount of $1.1 billion and will provide the non-exclusive license for HTC intellectual property.
Cher Wang, Chairwoman and CEO of HTC stated, “ This agreement is a brilliant next step in our longstanding partnership, enabling Google to supercharge their hardware business while ensuring continued innovation within our HTC smartphone and Vive virtual reality business.”
While Google Senior Vice President of Hardware Rick Osterloh wrote, “ That’s why we’ve signed an agreement with HTC, a leader in consumer electronics, that will fuel more product innovation in the years ahead.”
We're excited to welcome some new talent to Google: announcing an agreement with HTC. https://t.co/4YrDP4XJ6s
— Google (@Google) September 21, 2017
With this deal Google sounds too serious and how much it is a concern to build its own family to compete against tech giants Apple and Amazon. Before this Google was providing Android platform to smartphone manufacturer to ensure the use of their global search engine and its application like email, maps, YouTube and much more.
Google is also planning to manufacture internet-connected hardware products typically designed for home use. They are planning to build a home speaker, which will be voice controlled and would be known as Google Assistant. This Google Assistant will be quite similar to the Amazon’s Echo and will answer to user questions and helps to manage people’s lives.
HTC Is Rumored To Launch 3 New Phones By The End of 20171 days ago
Earlier, the search giant paid $12.5 billion to Motorola five years back and sell it off to Lenovo for less than $3 billion. That time also Google has planned to gain the grip over smartphone manufacturer but could not get as per expectation.
Getting into hardware might be fruitful for the Google but it can be bad news for the smartphone manufacturers who rely on Google Android operating system. Let see what will be the next step of search engine beast Google, would they be able to compete against the currently standing pillars of the smartphone market or not.