Google to buy HTC's Pixel-making expertise, HTC retains the brand
by Daniel Petrov / Sep 20, 2017, 8:25 AM
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:
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.
posted on Sep 20, 2017, 8:29 AM 4
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.
posted on Sep 20, 2017, 8:32 AM 19
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.
posted on Sep 20, 2017, 9:23 AM 1
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.
posted on Sep 20, 2017, 11:39 AM 6
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.
posted on Sep 20, 2017, 10:17 AM 9
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"
posted on Sep 20, 2017, 8:35 AM 12
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.
posted on Sep 20, 2017, 8:30 AM 0
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.
posted on Sep 20, 2017, 6:40 PM 0
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?
posted on Sep 20, 2017, 8:35 AM 0
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.
posted on Sep 20, 2017, 8:54 AM 5
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.
posted on Sep 20, 2017, 11:12 AM 4
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.
posted on Sep 20, 2017, 8:49 AM 0
Posts: 5; Member since: May 08, 2015
i think sony will be next
posted on Sep 20, 2017, 8:56 AM 2
Posts: 1324; Member since: Aug 31, 2016
Sony needs to stop selling only in Japan and start selling to the rest of the world.
posted on Sep 20, 2017, 9:05 AM 1
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?
posted on Sep 20, 2017, 9:09 AM 0
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