Google announced that it has made the official agreement of $1.1 billion with HTC and HTC’s smartphone design and engineering team will move to work for Google. Though the company has not revealed details about the deal, the company’s individual brand smartphone business will carry on with at least one more flagship. Google will also acquire a non-exclusive license for the intellectual property of HTC under the agreement.
HTC and Google have a long-time partnership with each other and according to the estimation, the Pixel smartphones account for 20 percent of HTC’s smartphone shipments.
The HTC is facing substantial loss from many months and shedding the salaries of the staff. However, Google is acquiring the HTC Corp. with $1.1 billion in cash so it will give the company more breathing room.
Another reason for HTC’s decision to shut down smartphone operations is that nobody will want to purchase a phone from extinct company division. The company has many carriers and stores around the world.
But, it is expected that HTC will complete its project of a new flagship device as it has been working for a long time already.
Both companies have achieved several mobile-industry firsts, including the first Android smartphone the HTC Dream in 2010 Nexus One, in 2014 Nexus 9 tablet, and the first Pixel smartphone just last year.
Google said that they have a longtime partnership with HTC and created most beautiful, high-end devices in the market. The company is very excited to join the members of HTC team in their journey.