Google Purchases HTC's Pixel Division for $1.1 Billion

[MacRumors]

Google today announced that it will acquire part of HTC's mobile division in a deal that's worth $1.1 billion.

Under terms of the agreement "a team of HTC talent" will join Google's hardware organization. The HTC employees moving to Google worked as part of the "Powered by HTC" unit that developed the Google Pixel and Pixel XL smartphones. Google also gained a non-exclusive license for HTC intellectual property.

"These future fellow Googlers are amazing folks we've already been working with closely on the Pixel smartphone line, and we're excited to see what we can do together as one team," said Google SVP of hardware Rick Osterloh.

While part of HTC's mobile unit is moving to Google, HTC will continue to develop and sell HTC-branded smartphones. HTC says the sale will allow for a "more streamlined product portfolio," and that its next-generation flagship phone is already in development.

Google's HTC purchase marks its second major smartphone-related acquisition. Google purchased Motorola Mobility in August of 2011 for $12.5 billion, mainly to get Motorola's patents, and in 2014 sold the company to Lenovo for $2.91 billion.

With the acquisition of the HTC hardware team, Google will be able to more closely mimic Apple's strategy of close integration between software and hardware.

Google's next-generation Pixel 2 and Pixel 2 XL smartphones are set to debut at an October 4 launch event.

Article Link: Google Purchases HTC's Pixel Division for $1.1 Billion

 

[Michael Scrip]

They're like locusts. They're moving from planet to planet... their whole civilization. After they've consumed every natural resource they move on... and we're next.

First Motorola... now HTC...

Who's next?

 

[farewelwilliams]

feeling the heat of the A-chips

 

[redheeler]

With the acquisition of the HTC hardware team, Google will be able to more closely mimic Apple's strategy of close integration between software and hardware.

My thoughts exactly, this could eventually be some tough competition for Apple. Will be interesting to see how it goes.

 

[LoveToMacRumors]

With the acquisition of the HTC hardware team, Google will be able to more closely mimic Apple's strategy of close integration between software and hardware.

And they say iOS is copying Android.... right

 

[adamjackson]

Motorola 2.0?

 

[lunarworks]

T-minus how many months until Google divests itself of HTC's mobile division?

 

[chetttos]

They finally realized Apple’s long term strategy. In some years from now, they will have a real ecosystem if they are smart enought. Let’s hope Apple does not fall sleep and set the bar higher.

 

[pat500000]

They got googled.......

 

[zakarhino]

My thoughts exactly, this could eventually be some tough competition for Apple. Will be interesting to see how it goes.

Not sweating it personally. Most of Google’s revenue comes from advertising, made possible only by data mining. The rest of their products rely on that data too, including most of Android’s ‘compelling’ features.

I’m basically doing a bad job of saying that it doesn’t matter if Google catches up to Apple’s hardware, it’s the privacy and security issues in their software that they need to revise. As far as I can tell, Google have no plans to address those issues any time soon.

On the other hand it’ll potentially drive more hardware innovation from Apple — now that I’m interested in.

 

[Rogifan]

My thoughts exactly, this could eventually be some tough competition for Apple. Will be interesting to see how it goes.

You mean like Google’s acquisition of Motorola was tough competition for Apple? What exactly is Google acquiring? And don’t say design. Google’s not spending $1B on designers.

 

[canadianreader]

They're like locusts. They're moving from planet to planet... their whole civilization. After they've consumed every natural resource they move on... and we're next.

First Motorola... now HTC...

Who's next?

As long as they are on earth they should be ok

 

[Rogifan]

They finally realized Apple’s long term strategy. In some years from now, they will have a real ecosystem if they are smart enought. Let’s hope Apple does not fall sleep and set the bar higher.

How is this any different than when they acquired Motorola’s phone division?

 

[RiddlaBronc]

They're like locusts. They're moving from planet to planet... their whole civilization. After they've consumed every natural resource they move on... and we're next.

First Motorola... now HTC...

Who's next?

Apple is next

 

[oneMadRssn]

Google also gained a non-exclusive license for HTC intellectual property.

In a year or two, look for this IP to be spun off into a holding company and enforced against Apple and Samsung. People that don't know how IP works will cry "troll," forgetting that HTC innovated a lot of what we take for granted today.

 

[chetttos]

How is this any different than when they acquired Motorola’s phone division?

They did not have Pixel Phones, they had Nexus. Sounds the same, but it is a different approach.

 

[oneMadRssn]

How is this any different than when they acquired Motorola’s phone division?

You mean like Google’s acquisition of Motorola was tough competition for Apple? What exactly is Google acquiring? And don’t say design. Google’s not spending $1B on designers.

Manufacturing. Right up there with Foxconn and Pegatron, HTC is a huge manufacturing power.

 

[Michael Scrip]

They finally realized Apple’s long term strategy. In some years from now, they will have a real ecosystem if they are smart enought. Let’s hope Apple does not fall sleep and set the bar higher.

Google might realize that hardware+software is the way to go... but I doubt it will change much.

There are now over 300 million Android phones shipped every 3 months.

Even in their heyday... Motorola wasn't a big contributor back then. And neither is HTC now.

Also... Google "partnered" with HTC to make the previous Google Pixel phones... how different do you think it will be if Google now "owns" HTC under their operational roof?

It'll be fun to see what happens... but Android's ecosystem is really strong because of their OEMs... and not from Google's hardware.

[doublepost=1505965932][/doublepost]

Manufacturing. Right up there with Foxconn and Pegatron, HTC is a huge manufacturing power.

Is this the same HTC who couldn't make enough Pixel phones? Backlogged for months?

 

[oneMadRssn]

Is this the same HTC who couldn't make enough Pixel phones? Backlogged for months?

Manufacturing is hard. Just ask Apple, who can't make enough overpriced earbuds despite having more money than god.

 

[jeremiah256]

Apple is next

Then, in a move that made Wall Street swoon, both Apple and Google combine their Double Irish tax arrangement such that the U.S. government is on the hook to provide them both tax rebates of $200B each, per year. Jim Cramer's head exploded. News at 11:00.

 

[Michael Scrip]

Manufacturing is hard. Just ask Apple, who can't make enough overpriced earbuds despite having more money than god.

Nice deflection...

But I wanted to hear more about HTC being a huge manufacturing power...

Overall... HTC hasn't been a big player in 5-6 years... or whenever HTC was a household name. Back in the EVO 4G days?

HTC's One M series got a lot of press over the years... but nobody bought them.

The truth is... HTC has been on the ropes for years... falling behind the Samsungs, Huaweis and Xiaomis of the world.

As for manufacturing... HTC didn't do too well meeting the Pixel's (small) demands.

Oh... and I haven't even mentioned HTC's financials. I read that HTC hasn't made a profit in five quarters(?)

Hmmmm... this sounds about right... Google bought Motorola after they had fallen from grace.

Maybe that's what Google does. They wait for companies to fall into disrepair... then they swoop in, extract any value, and move on.

Like I said earlier... locusts.

 

[69Mustang]

You mean like Google’s acquisition of Motorola was tough competition for Apple? What exactly is Google acquiring? And don’t say design. Google’s not spending $1B on designers.

They bought hardware designers and cheaper long term access to HTC's patents. Probably some of the same patents Apple and HTC agreed to in their 10 year deal. That agreement with Apple is also probably one of the reasons HTC gave Google non-exclusive rights to HTC IP.

How is this any different than when they acquired Motorola’s phone division?

Google acquired Motorola for that patent portfolio. They essentially paid $9 billion for Motorola's patents and dumped the hardware for $3.5 billion. They got exactly what they wanted from that Moto deal.

 

[ghost187]

If Apple fell flat on their Billion+ dollar investments as often as Google, Tim Cook and everyone under him would have been fired.

 

[mejsric]

then months later, Google sell HTC Pixel Division.

 

[FelixDerKater]

So, one upon a time, I heard of Google acquiring a phone manufacturer. Hmmm. Deja-vu.