Google acquires HTC smartphone team in $1.1bn deal

By Pouyan Broukhim

Google has signed a definitive agreement with HTC in a $1.1bn deal that will see Google acquire a team of 2,000 employees from the Taiwanese smartphone maker.

“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’s Senior Vice President of Hardware, Rick Osterloh.

Google’s acquisition will see HTC’s research and design department cut in half, with the firm currently employing 4,000 staff in this division.

The deal comes at a time when Google is becoming increasingly serious about its hardware line. By securing a significant proportion of HTC’s talent, the company will now be signficantly better positioned to challenge its android rivals in the likes of Samsung, LG and Huawei.

"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," said Cher Wang, Chairwoman and CEO of HTC.

“We’re excited about the 2017 lineup, but even more inspired by what’s in store over the next five, 10, even 20 years,” Osterloh added.

“Creating beautiful products that people rely on every single day is a journey, and we are investing for the long run.”

This is not Google’s first foray into acquisitions in the smartphone market, having bought out Motorola mobility six years ago in a deal worth $12.5bn.

Google’s latest grouping of products - the Pixel 2, Pixel 2 XL, Google Home Mini and Pixelbook - are set to be released at an event in San Francisco on 4 October.


Featured Articles

Top 10 cybersecurity specialists in the US

As cyber attacks grow in frequency and become increasingly sophisticated, Business Chief looks at the top 10 cybersecurity specialists in the US.

Silicon Valley Bank collapse: How did we get here?

US authorities have stepped in to protect all Silicon Valley Bank customers following the second-largest bank failure in the country's history

Top 10 best new leadership books by women to read in 2023

To mark IWD, here’s our pick of the best new leadership books – all penned by impressive women at the forefront of the ever-evolving world of work

Eight of the best business leadership podcasts

Leadership & Strategy

CEO John Pagano, leading Saudi Arabia's Red Sea Global

Leadership & Strategy

Top 10 female CEOs according to Fortune’s Global 500 list

Leadership & Strategy