The Google and HTC deal is official, it’s just not quite what we were expecting.
Google isn’t buying HTC outright, à la Motorola, but is instead Google and HTC have “signed an agreement” to send some of HTC’s employees over to Google, while HTC gets a $1.1 billion dollar cash infusion.
The deal also includes a “non-exclusive license” for HTC’s intellectual property.
HTC is still an independent company, and will still manufacture smartphones.
Google is acquiring HTC’s employees only, and not any of the Taiwan company’s factories. Manufacturing facilities are more of a liability today in the smartphone business than anything, with even Apple, the king of vertical integration, outsourcing that work to companies like Foxconn.
On Google’s side, the deal was announced by SVP of Hardware and former Motorola CEO Rick Osterloh, indicating that this group of employees is headed straight for Google’s hardware division.
In a blog post, Osterloh said, “With this agreement, a team of HTC talent will join Google as part of the hardware organization.
These future fellow Googlers are amazing folks we’ve already been working with closely on the Pixel smartphone line, and we’re excited to see what we can do together as one team.”
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