Google, HTC announce $1.1bn cooperation agreement

Google and HTC Corporation have announced a definitive agreement under which certain HTC employees — many of whom are already working with Google to develop Pixel smartphones — will join Google. HTC will receive $1.1 billion in cash from Google as part of the transaction. Separately, Google will receive a non-exclusive license for HTC intellectual property (IP).
“The agreement is a testament to the decade-long strategic relationship between HTC and Google around the development of premium smartphones,” a press release said.
“This agreement also supports HTC’s continued branded smartphone strategy, enabling a more streamlined product portfolio, greater operational efficiency and financial flexibility. HTC will continue to have best-in-class engineering talent, which is currently working on the next flagship phone, following the successful launch of the HTC U11 earlier this year. HTC will also continue to build the virtual reality ecosystem to grow its VIVE business, while investing in other next-generation technologies, including the Internet of Things, augmented reality and artificial intelligence,” it added.
Cher Wang, chairwoman and CEO of HTC, said: “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.”
She added: “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 well positioned to maintain our rich legacy of innovation and realize the potential of a new generation of connected products and services.”
The agreement is expected to further reinforce Google’s commitment to smartphones and overall investment in its emerging hardware business.
It represents a significant investment by Google in Taiwan as a key innovation and technology hub, according to the statement.
“HTC has been a longtime partner of Google and has created some of the most beautiful, premium devices on the market,” said Rick Osterloh, senior vice president of hardware at Google. “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.”

Source: Arab News