The Taiwanese company was once a major player in the smartphone market but has struggled to compete with the likes of Apple and Samsung. This has lead to Alphabet’s Google to sign a $1.1bn (£822m) deal with Taiwan’s HTC to expand its smartphone business.
Shares in HTC were suspended in Taiwan today Thursday 21st and Google expects the deal to close by early 2018, provided it gets the all clear from regulators.
Under the deal, Google will acquire a team of people who develop Pixel smartphones for the US company and receive a non-exclusive license for HTC’s intellectual property. According to HTC half their smartphone research and development team – about 2,000 people – will go to Google.
The deal marks Google’s second major foray into smartphone manufacturing but the big winner is HTC. “It’s a much needed investment as HTC struggles to maintain its smartphone business and grow its early start in virtual reality,” Geoff Blaber from CCS Insight said.