Google to buy HTC's Pixel-making expertise, HTC retains the brand

Google to buy HTC's Pixel-making expertise, HTC retains the brand
UPDATE: Google issued a press release confirming that it will invest $1.1 billion in HTC for its phone engineering assets and intellectual property, but won't be an exclusive owner of the brand, while HTC's CEO Cher Wang mentioned that they are still "actively preparing" for the next company flagships

"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,” quipped Google's hardware chief Rick Osterloh. How will that partnership arrangement work in practice for HTC, given that Google will likely hoard most of its phone-making expertise, remains to be seen.


Those rumors that Google is ready to buy HTC? Well, they turned out to hold water in the end, as HTC stock is now suspended in trading, "pending a major announcement" tomorrow. Perennial leakster Evan Blass says they have received word that Google will be getting HTC's core mobile engineering assets, while the Taiwanese will be retaining their brand. What does that mean?

Well, Alphabet, Google's parent company, will be getting the means to make phones itself, probably sold under the Pixel brand, since the upcoming Pixel 2, as well as its predecessor, are said to be made by HTC anyway. Google already tried to be an in-house phone maker with the purchase of Motorola, but the strategy wasn't clear enough at the time, and it divested of Moto to Lenovo, keeping its wireless patents in the process.

With an eventual purchase of HTC's mobile division, Google will be getting top-notch expertise in smartphone building which it can steer and strategize with to vertically integrate the Pixel brand, and become an Apple of sorts, making both the hardware and software in house. How will that affect the other Android makers, and how much could Alphabet be paying for HTC, remains to be heard. HTC's shares ended today's session on the Taiwanese exchange about 2.5% higher, making it worth $1.9 billion at the moment. 

Here's the actual Taiwan Stock Exchange memo, and, apparently, a huge part of HTC's headquarters has been blocked off for a major "release of material information" event already:


source: Google, @evleaks & Financial Times

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37 Comments

1. Cat97

Posts: 1893; Member since: Mar 02, 2017

So after Motorola, now another company ruined by Google and probably sold to the Chinese a few months from now.

3. combatmedic870

Posts: 986; Member since: Sep 02, 2015

Motorola ruined itself. Google took advantage of the situation and used it to get 1000s of very valuable patents. Then helped try to get the Motorola brand back on it's feet.

11. Cat97

Posts: 1893; Member since: Mar 02, 2017

Yeah, Google "took advantage": it paid 12.5 billion for Motorola, and then sold it to Lenovo for 2.91 billion. So the patents are worth 10 billion ? Haha...what a joke.

22. Hallyu

Posts: 790; Member since: Jul 21, 2015

Why do you regret? Those backward companies are not contributing anything to tech, just steal and copy features from real innovator like Samsung. We all could see this coming, it just a matter of time. If you don't develop, you're dead, and no one is gonna miss you, that's sad truth. The biggest anticipate event is Sony's and other Japanese pirated firms like Toshiba, Hitachi and Panasonic. I'll celebrate a big party for them.

25. jacky899

Posts: 430; Member since: May 16, 2017

Samsung has been using Sony's camera sensors who have so far been superior to Samsung's phone and Samsung's current day success is owed to the technological groundwork built by these Japanese firms that you hate so if your wish for all Japanese firms to go down so the Koreans can rule the world, it will be a grim day for mankind besides the patriotic Koreans floating around on PA.

23. talon95

Posts: 998; Member since: Jul 31, 2012

It may be worth 10B. Apple had been going after a lot of Android manufacturers, so Google positioned itself to defend or counter sue Apple when needed. They can now extend their patent portfolio to anyone they choose to protect their product. It was an expensive move but I haven't seen it do anything negative to their stock price trend, so I think it was more good than harm.

26. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Not only that but I believe Google got 3 billion worth of tax write offs from the Motorola purchase so in essence, the patents were worth about 7 billion or less.

29. Man_Utd

Posts: 185; Member since: Feb 03, 2015

Yes, you're right but that's not the full story. Motorola had other assets that Google sold off home division 2.5 billion, and Motorola had 3 billion in cash.

5. Omaressameldin

Posts: 6; Member since: May 23, 2017

if it wasn't for google Motorola probably would have gone under. Also the original Moto x came out after that acquisition which is one of the best Motorola devices, and if i remember correctly when Google purchased Motorola they were clear about selling it later and that the purpose of the purchase was to "save those patents from the likes of Microsoft and Apple"

9. gotoAndDie

Posts: 82; Member since: Jun 13, 2015

HTC is a Taiwanese company. It is already technically Chinese.

31. justrt

Posts: 446; Member since: Jul 10, 2014

And I thought Google was different than Microsoft :p

32. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

HTC has been ruined for a while now and HTC accomplished that all on it's own.

2. combatmedic870

Posts: 986; Member since: Sep 02, 2015

I don't know what tonthink about this. It's going to piss android oems off. But they are mostly going under anyhow beside Samsung and LG.

4. baldilocks

Posts: 1511; Member since: Dec 14, 2008

....don't forget Huawei. They are doing just fine.

34. omnitech

Posts: 1131; Member since: Sep 28, 2016

Not sure how well LG is actually doing. Head phones, tv's, and fridges they should be doing great. Mobile? Not sold on that. Google definitely should have targeted them instead, especially since Apple is now hoarding the OLED displays from Samsung.

6. mercorp

Posts: 1045; Member since: Jan 28, 2012

So it means no more phones that have the htc name? Is it like microsoft buying out nokia in 2013?

10. dnomadic

Posts: 416; Member since: Feb 20, 2015

Not the same.... Microsoft Killed the name and the phones. Google is actually going to produce products. This will be great for the end user experience. For those that wanted an Apple experience, they will now have it with this pending purchase... Own hardware division, control of the software, and they have purchased companies to add the ability to make their own chips... This should lead to some amazing devices from Google. The Pixell is already an iPhone equal... Combining all parts will just take it to the next level.

14. Cat97

Posts: 1893; Member since: Mar 02, 2017

Remember Google + Motorola ? People were saying the same thing then...and the outcome was completely different than expectations.

24. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

No point getting bend out of shape over this. We will see. Google has proven to me to be the lesser of the most Evil so I would take it as a win for consumer unless Google plan to close the door to other Android OEM.

7. Joosty

Posts: 473; Member since: Mar 14, 2013

Interesting. Good on HTC's end regardless. Now they will have the backing from Google to stay alive, and Google will have total control in all device manufacturing. I wonder what this means for HTC devices however.

8. kiko007

Posts: 7493; Member since: Feb 17, 2016

FML...

12. surethom

Posts: 1695; Member since: Mar 04, 2009

Lenovo ruined Motorola not Google although it was Google that picked Lenovo from the small Selection.

13. dragon09

Posts: 5; Member since: May 08, 2015

i think sony will be next

17. NarutoKage14

Posts: 1324; Member since: Aug 31, 2016

Sony needs to stop selling only in Japan and start selling to the rest of the world.

21. Lumberjack

Posts: 306; Member since: May 04, 2017

Sony focus where they sell better. Japan, Taiwan, Tailand, Sweden, Netherlands...

15. pokharkarsaga

Posts: 551; Member since: Feb 23, 2012

This means we get to see entry & mid range Android One smartphones?

16. PhoneInQuestion

Posts: 496; Member since: Aug 20, 2017

We're getting a Social Justice Warrior version of HTC aren't we?

18. toukale

Posts: 632; Member since: Jun 10, 2015

Another one bites the dust.

19. PryvateiDz

Posts: 443; Member since: Jul 31, 2011

So let me make this clear, is Google buying HTC's mobile division? And HTC will keep it's brand name? But by keeping this brand name, it can use it in whatever products or services, but they will no longer have their mobile assets to produce any other HTC smartphones like the HTC U11?

20. Plasticsh1t

Posts: 3106; Member since: Sep 01, 2014

The first thing to do is kick the assholes who runs HTC and start fresh. Make HTC great again.

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