Google Is Buying HTC’s Smartphone Expertise for $1.1 Billion
- 7 years ago
Google Is Buying HTC’s Smartphone Expertise for $1.1 Billion
Google leaned on HTC to manufacture its first Pixel smartphone, which was released last year,
and is working with the company to produce the next version of the phone, which is expected to be announced on Oct. 4.
SAN FRANCISCO — Google announced late Wednesday night
that it is spending $1.1 billion to hire a team of engineers from the smartphone business of the struggling Taiwanese manufacturer HTC in a bid to bring more hardware expertise to its own mobile technology operations.
HTC said many of its estimated 2,000 employees affected by the deal were already working with the search giant on smartphones.
HTC said it will continue to make its own smartphones — including a new premium model — although it plans to streamline its handset portfolio.
The company abandoned its plans to own a smartphone manufacturer when it sold Motorola to China’s Lenovo Group
for $2.9 billion in 2014, less than three years after acquiring the handset business for $12.5 billion.
Currently, most of Google’s smartphone software runs on devices manufactured by companies like Samsung
and LG Electronics, and Google has only a limited say in what those companies produce.
By acquiring the HTC engineering group that had already been working with the company, Google
secured hardware talent without taking on expensive assets, like manufacturing facilities.
Google leaned on HTC to manufacture its first Pixel smartphone, which was released last year,
and is working with the company to produce the next version of the phone, which is expected to be announced on Oct. 4.
SAN FRANCISCO — Google announced late Wednesday night
that it is spending $1.1 billion to hire a team of engineers from the smartphone business of the struggling Taiwanese manufacturer HTC in a bid to bring more hardware expertise to its own mobile technology operations.
HTC said many of its estimated 2,000 employees affected by the deal were already working with the search giant on smartphones.
HTC said it will continue to make its own smartphones — including a new premium model — although it plans to streamline its handset portfolio.
The company abandoned its plans to own a smartphone manufacturer when it sold Motorola to China’s Lenovo Group
for $2.9 billion in 2014, less than three years after acquiring the handset business for $12.5 billion.
Currently, most of Google’s smartphone software runs on devices manufactured by companies like Samsung
and LG Electronics, and Google has only a limited say in what those companies produce.
By acquiring the HTC engineering group that had already been working with the company, Google
secured hardware talent without taking on expensive assets, like manufacturing facilities.