As on Wednesday, HTC and Google confirmed has been brewing for months, rumors of a Takeover of the Smartphone manufacturer today. But the final, signed agreement is different, as it was supposed, in the run-up For 1.1 billion dollars Google takes over only a part of the Smartphone division.
The Pixel Team, and patents for Google
The agreement provides that, “certain employees of HTC – many of whom are already working with Google on the Pixel-Smartphones – go to Google”. In addition, Google receives against the cash settled purchase price a non-exclusive access to the intellectual property, and thus Essentially on the HTC-held patents. Had been expected by many market observers, however, is that Google takes over the Smartphone division entirely. But this is not the case.
HTC CEO Cher Wang sees in the agreement a confirmation of a decade of jointly-driven development of Smartphones in the upper price segment. At the same time HTC with the remaining staff of the division, it is possible, under its own brand is a “clearer product portfolio of efficient and financially flexible”. HTC will also continue to be “the best developer in their class”, who are currently entrusted with the development of the next top model as a successor to the U11 (Test). For the last few years, this product segment, however, is not financially successful.
For Google, in turn, the agreement reaffirms the commitment of the group for the advancement of Smartphones and the vigorous own Hardware business.
Google gets what Google wants
The partial sale may come as a surprise, given Google’s experience with the Acquisition of Motorola, it appears only logical: Google doesn’t need a Smartphone manufacturer with its own range of products, but support in the development of its own Smartphones, the Pixel series. How the investors behind HTC the sale, remains to be seen: as a Precaution, the sale of the shares has been suspended until Further notice.
Both companies expect to have the Acquisition, subject to regulatory approvals until the beginning of 2018 completed.