Google has been among the biggest names when it comes to the world of smartphone technology. The company has been around for quite some time and has been innovating the way the markets of technology function. It was being heavily speculated that Google is going to either invest into HTC or acquire the company in some capacity. This has been made official today as Google took over the Pixel Team from HTC.
A $1.1 Billion deal between Google and HTC saw Google acquiring a portion of HTC’s hardware division. Google did not acquire the entire hardware division but the team of engineers who worked on the Google Pixel and Pixel 2 devices. With the Pixel Team being taken over, Google has taken away the cream of the crop from HTC in exchange for $1.1 Billion.
This agreement between the two parties is all set to close by early 2018. The $1.1 Billion deal has been made in all-cash. Following the deal HTC will be able to use their brand name and continue creating phones as usual but their Pixel Team will now be with Google and will work Google devices. This relieves the burden of about 2000 employees from HTC.
With the Pixel Team gone and an additional $1.1 Billion to help them through the tough times, HTC is now expected to bounce back harder than ever before. The company is now expected to work harder towards developing and promoting their Vive VR headsets division.
In the days to follow, expect major layoffs to be announced from HTC. The company is expected to release the HTC U11 Life – an Android One smartphone, followed by a new flagship device that they have been working on. With the acquisition of the Pixel Team by Google, HTC has been given a new life-line. It would be interesting to see how they make use of it and what future holds for the company.