As the news pour in, Google is paying a colossal amount of $1.1 billion to get on board a part of HTC smartphone team for manufacturing phones for them. Late Wednesday, Google announced that it would be requiring the services of an established team, including those who have formerly worked on the Google-branded Pixel devices. By paying HTC smartphone team a whopping $1.1 billion, the tech giant will also secure a non-exclusive license to HTC intellectual property.
The handsome ‘acquihire’ also indicates Google’s transformed trust on hardware.
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HTC smartphone team to work under Rick Osterloh
There is no word from either of the companies about the number of employees the team will take on board. In any case, it will work under Rick Osterloh, an experienced executive whom Google hired some 18 months ago. Osterloh had been recruited to take care of a new hardware unit exclusively dedicated for the Pixel phones, the Google Home smart speaker and some other devices.
It is relevant to mention that earlier Rick has served as a top executive at Motorola. Ironically, Google bought Motorola in 2012 and sold it in 2014. The reason Google cited in 2014 was lack of interest in the phone-making business. However, Google changed its mind later.
While announcing the transaction, Rick wrote in a blog post:
“Creating beautiful products that people rely on every single day is a journey, and we are investing for the long run. It’s still early days for Google’s hardware business. We’re focused on building our core capabilities, while creating a portfolio of products that offers people a unique yet delightful experience only made possible by bringing together the best of Google software – like the Google Assistant – with thoughtfully designed hardware”
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Recruited team is an experienced one
Google launched a Pixel phone a year ago. According to Rick, a handful of recruited employees who are transferring from HTC to Google had previously worked on the Pixel devices. The tech giant is expected to announce the second version of the well-reviewed phones on 4th October.
Both HTC and Google have been partners for quite a long time now. The former manufactured the maiden Android device in 2008, the HTC Dream, few months after Apple had launched the iPhone.
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HTC to continue making branded phones
HTC does not intend to get out of the hardware business. The Chairwoman and CEO of HTC, Cher Wang 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 businesses”
HTC is looking forward to make its own branded phones besides developing virtual reality handsets and other devices.
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