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Google to Acquire HTC Team for $1.1 Billion Cash

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For the past few weeks, there have been rumors circulating of a Google-HTC acquisition. Many wondered how this acquisition would be beneficial to both companies and how it would play out. Now, it seems like the two companies have reached an agreement. 

According to the announcement made by the Alphabet subsidiary on Thursday, Google will be acquiring a team of employees from the smartphone manufacturer; most of whom have worked on the Pixel. In exchange, HTC will be paid $1.1 billion in cash. The agreement also gives Google a non-exclusive license for HTC's intellectual property for use in Google-designed hardware.

With this experienced team working with them, Google can finally bring to life some of the company's bigger smartphone hardware ambitions. Some of these include creating its own processor and incorporating "Tensor Processing Units;" which are machine learning co-processors. 

This acquisition gives HTC more time to focus on its promise of building their own branded smartphones. Now that they have $1.1 billion to help them keep their lights on, the company is now more financially flexible to work on its next flagship smartphone. Not to mention, this funding may also help the company work on its Vive virtual reality business. 

Although things seem to be promising for HTC, it is still up to the company to improve itself. For one thing, the company needs to make more compelling devices without the help of the engineering team they have just given up. Otherwise, HTC won't be going anywhere. And when that happens, they could only hope for another opportunity like this. 

The acquisition between the two companies is expected to close by early 2018, as it is subject to the usual regulatory approvals. 


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14 comments:

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  1. HTC - Help This Company

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  2. so Google purchased some employees from htc for one billion dollars or did Google purchase htc? I'm confused

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    1. My take on the deal is:
      Google is hiring 2000 engineers from HTC.
      Google is acquiring non-exclusive rights to some HTC intellectual property (mainly patents).
      Google is giving HTC $1.1 billion.

      The engineers and patents will give Google more control and flexibility over the hardware design of future products and could reduce time to market.

      The money will keep HTC in business for another year or two. Google needs HTC to survive for at least a year to manufacture its soon to be launched Pixel 2 phones.

      Delete
  3. Acquired Motorola and sold.. Now buying HTC in 2017 and selling in??!

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  4. Google's literally buying people so that they'll be able to maintain decent employment once their old company goes to hell, so long as they work themselves to the bone for their benevolent corporate overlords.

    It's just like muh slavery, and I wouldn't be surprised if those employees' kids came to hate Google dedpite everything it's done for their families.

    Hopefully Google will stand up for itself, point to a dead and buried HTC, and make it clear that they were "the good guys" for giving those employees a better future at Google.

    The last thing I'd want to see is Google getting saddled with Pixel Guilt and the job creators' burden.

    You know, aside their obvious responsibility to the communities of their host nations, nor their mandate to generate profit for investors.

    I mean that they shouldn't be forced to hire useless, lazy, ungrateful bums just because their parents worked for Google, even though their inflated, socially just salaries would tank and bankrupt the company at the expense of all its honest employees.

    In retrospect, maybe this "foreign acquisition of employees" isn't the best thing for Ameri- I mean Google.

    Let HTC keep its employees.

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    1. They will probably get laid-off and the CEO's will getm ost of the money

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    2. All jokes aside, they're probably skilled and moderately talented enough to put the iPhone to shame.

      Apple's been skating by on brand loyalty and "selling a lifestyle" without investing in any real innovation.

      The phones become more powerful, but the OS remains locked down, screen sizes are abysmal, the form factor doesn't improve, and prices are obscenely high compared to a good enough droid.

      With a crack team of its own engineers and a propensity for outright villainy, Google's gPhone should finally be able to provide an even better user experience at an equally obscene price.

      The real problem is that the "loads'a money" crowd are brand loyalists, and Google's only gonna wind up either cannibalizing its own market share or falling flat on its face.

      Neither is the engineers' fault, and they're not the ones who should get fired if the gPhone, which will meet all the managerial class' expectations, falls flat on its face due to the lack of an actual market for "yet another overpriced flagship."

      The sad fact is, Google still hasn't realized that they can't compete on postpaid with the Big 2, and their over-$500 phones are too costly for most of the saturated pay-in-full market.

      At that price point, they're just not competitive for anyone who'd actually be interested in buying the gPhone, and that's what might get Google's in-house dev team axed after the phone results in a loss.



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    3. "All jokes aside, they're probably skilled and moderately talented enough to put the iPhone to shame."

      That's the biggest joke of all. The dust bin of mobile history is littered with the husks of countless callow "iPhone killers"

      Instead of putting the iPhone to shame, Apple ends up with the last laugh.

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  5. Is this another pet project that will go no where and never be maintained like most Google projects?

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  6. Google got an excellent deal. Not only did they get the people, they get access to HTC intellectual property. They paid way more to get the patents from Motorola. I was really hoping to see HTC make a comeback as they still have high quality hardware.

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    Replies
    1. The phones cost too damn much, which is a big problem in a hyper-saturated market.

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  7. I say Google has way too much information about markets, habits, spending and actual use to make really huge blunders. They may be looking at the mediocre reception of the latest iphone. I predict if Google really is interested in manufacturing they will bring out devices in at least three tiers possibly four. They may even revive Nexus and have Pixel, Nexus, Android One and (name TBD) entry level phones.

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    Replies
    1. You're forgetting the human factor, wherein a large corporate bureaucracy with many competing interests can completely bungle even the best of scenarios.

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