Google offers 2,000 HTC engineers for $ 1.1 billion

by bold-lichterman

We mentioned it yesterday in the FrenchWeb Insiders, there was a pressing rumor following the suspension of the listing of HTC stock on the Taiwan Stock Exchange; it has been confirmed since this morning. HTC has announced a partial sale of its activities to Google, which seeks to strengthen its position in the smartphone market largely led by Samsung and Apple, in what looks in part to a “Acquihire” (HR acquisition). The amount of $ 1.1 billion will be paid to HTC in cash.

This “Cooperation agreement” covers the non-exclusive intellectual property license of the Taiwanese OEM, and half of its research and development teams, i.e. 2,000 engineers and designers. The latter know the Alphabet subsidiary well, since they have worked together for about ten years: Dream, the first Android smartphone released commercially in the United States in 2008, Nexus One in 2010, or the Pixel range are thus the fruit of the collaboration. between HTC and Google. The agreement will be effective at the start of 2018, after approval from the regulatory authorities.

HTC, however, retains its Vive virtual reality business, and will continue to develop its own mobile devices. After experiencing its heyday, especially for the quality of its devices, HTC had given way to fierce competition from the sector and was experiencing great difficulties, stringing losses for nine consecutive quarters.

Google acquired phone maker Motorola in 2012 for $ 12.5 billion but sold it two years later to China’s Lenovo for less than $ 3 billion.