Google and HTC Corporation today announced a definitive agreement. Under this agreement, some of the HTC employees will join Google. As a part of this agreement, HTC will receive $1.billion in cash from Google, for which Google will have a non-exclusive license for HTC intellectual property.

HTC will produce more streamlined products with best-in-class engineering talent. They are currently working on the next flagship phone following the success of HTC U11. They will also continue to build the virtual reality ecosystem to grow its VIVE business, IoT, augmented reality and artificial intelligence. Google considers this agreement as an investment in its emerging hardware business. In addition, Google will now have talents from both teams to support Pixel smartphone family. Google also considers this agreement as a major investment in Taiwan, which is technology and innovation hub.

Google Signs 1.1 Billion Cooperation Agreement With HTC

We can’t forget the decade-long history of team-work between HTC & Google. Together they created the first ever Android smartphone, the HTC Dream, also known as the T-Mobile G1. Followed by the Nexus One in 2010 and the Nexus 9 tablet in 2014. This team were also behind the first Pixel smartphone.

“As a pioneer of the smartphone market, we are very proud of our history of innovation. Our unmatched smartphone value chain, including our IP portfolio, and world-class talent and system integration capabilities, have supported Google in bolstering the Android market. This agreement is a brilliant next step in our longstanding partnership, enabling Google to supercharge their hardware business while ensuring continued innovation within our HTC smartphone and VIVE virtual reality businesses. We believe HTC is in well positioned to maintain our rich legacy of innovation and realize the potential of a new generation of connected products and services.”  said Cher Wang, Chairwoman and CEO of HTC.

“HTC has been a longtime partner of Google and has created some of the most beautiful, premium devices on the market. We’re excited and can’t wait to welcome members of the HTC team who will be joining Google to fuel further innovation and future product development in consumer hardware.” said Rick Osterloh, Senior Vice President of Hardware at Google.

Google’s Agreement With HTC

  • HTC Employees mostly who worked on the Pixel Smartphones will join Google.
  • This intellectual property transaction is through a non-exclusive licensing agreement.
  • This transaction reinforces HTC’s smartphone business and Google’s focus on compelling hardware.

The transaction under this agreement will close by early 2018. For the agreement Evercore served as financial advisor to HTC, Gibson Dunn and Tsar & Tsai acted as legal counsel. Lazar served as financial advisor to Google and Cleary Gottlieb and Lee & Li as legal counsel. With the two giants shaking hands, we can expect many more beautiful and high-end devices in the decade to come. Peace!

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