|Google Paid Htc $1.1 Billion To Turn Itself Into A Phone Maker|
After years of half-heartedly and occasionally hamfistedly building gadgets, Google's finally all-in on the hardware game. Google will announce a number of new products on October 4, reportedly including two new phones, a smaller version of the Google Home, and a high-end laptop. And on Wednesday, the company announced an agreement with struggling manufacturer HTC that will import a team of engineers over to Google, to help close the gap between Mountain View's hardware ambitions and its present reality.
The tie-up's not quite the acquisition that had been rumored, but rather a "cooperation agreement." Google is hiring a team of HTC employees—about 2,000 people in all, members of HTC's "Powered by HTC" division—most of whom have already been working on Google's Pixel phones. Those employees will stay in Taipei, Taiwan, where HTC is headquartered, but they'll become full-on Googlers. In exchange for those workers and a non-exclusive license for some of HTC's intellectual property, Google's paying HTC $1.1 billion. Both sides hope to close the deal by early 2018. Even after the arrangement is finalized, HTC will continue making its own phones, and building Vive VR products.
According to one source, the agreement essentially shortcuts the acquisition process. Google doesn't need an entire company; it just needs engineers that can help it tightly integrate Pixel hardware with its homegrown software. So rather than deal with enveloping HTC whole cloth, it can simply pay for and quickly get the team it needs. A team which, again, already makes Google hardware. In some ways, all that changes is the ID badge.
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