Will Google's Pixel-perfect HTC deal be more successful than the run with Motorola?

Will Google's Pixel-perfect HTC deal be more successful than the run with Motorola?
This time around, Google didn't splurge. When Google acquired Motorola for $12.5 billion, the troubled phone maker had $2.9 billion of cash in hand, and subsequently the Mountain View team also sold the Home division for $2.35 billion. When we add Lenovo's purchase price, and some $1 billion in tax-credits for Moto, Google ended up paying just a tad over $4 billion, gained some valuable insight on hardware-making, sniffed at it, and kept the patents.

It seems that there will be no more sniffing at good ol' manufacturing things. It's actually Moto's ex-CEO Rick Osterloh who announced that Google is paying "just" $1.1 billion for the most valuable part of one of the more iconic phone makers, the "Powered by HTC" division, which is where the Pixel phones have been in production for a while. Google is poaching no less than 2000 engineers and other flagship-making talent, as well as IP rights, while at the same time leaving the manufacturing capacity with all its maintenance obligations entirely to HTC. 

Not a bad deal, if you ask us, and, while it remains to be seen how HTC will fare after its next flagships which have already been developed are announced, when it comes to Google's part of the bargain, the upcoming Pixel 2 phone could be an early indicator whether the HTC deal will hold water in the end for them. This is why we wanted to ask you what's your take on the matter, will Google luck out with the HTC partnership better than it did with the outright acquisition of Motorola? Check your opinion below, and throw your two cents in the comments.

Will Google's Pixel-perfect HTC deal be more successful than the run with Motorola?

Yes
78.31%
No
21.69%

FEATURED VIDEO

65 Comments

1. IT-Engineer

Posts: 543; Member since: Feb 26, 2015

As long as Google keeps selling their pixel lineup to few selected countries, then yes this whole deal is doomed. They need to go global like Apple.

14. Settings

Posts: 2943; Member since: Jul 02, 2014

This. I really want to buy the first Pixel but I have to purchase it in a grey market seller with no warranties and doesn't offer aftermarket services.

21. sgodsell

Posts: 7365; Member since: Mar 16, 2013

Many really don't understand this deal at all. First of all HTC is still able to make phones as well as hold onto there patents. Google has access to those patents as well. Plus Google and HTC have teamed up to make a standalone Vive headset which will be announced October 4. It will not only support Google's Daydream VR, but will also bring the real world in as well. So users can use their hands or other objects to interact with. It will be an MR (mixed reality) headset.

24. trojan_horse

Posts: 5868; Member since: May 06, 2016

Really? Then it means Google is basically giving free money to HTC... Probably to bail HTC out of it's current financial meltdown.

25. kiko007

Posts: 7493; Member since: Feb 17, 2016

Dude, that is Sgodsell, take that crap with several grains of salt.

47. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

sgodsell seem to have a more diverse knowledge compared to an apple fanboy that makes fanboy statement in almost every posting. I also thought Google is giving free money at first but that's not the case, HTC Pixel team of engineers is now reporting to Google directly instead of HTC. The scope of the personnel transfer is undisclosed but now PA is saying no less than 2000 persons. Google is now effectively HTC partner with projects like pixel phones and VR if sgodsell input is correct. I think this is a win-win arrangement, Google gains a permanent phone manufacturer for their Google phones. Both companies stand to gain and learn from one another if the run multiple projects together. HTC is deseparate enough to work with Google on this. Instead of destroying HTC altogether like most other competitors, Google wants some sort permanent partnership. Much better than the last Motorola deal as they don't have to pay as much for the patents and still be able to use it like their own.

27. sgodsell

Posts: 7365; Member since: Mar 16, 2013

This quote from another article. HTC will continue onward with its own smartphone business even after sending a good portion of its talent and operations over to Google. HTC CEO Cher Wang said that this agreement will “ensure continued innovation within our HTC smartphone and Vive virtual reality business.”

29. sgodsell

Posts: 7365; Member since: Mar 16, 2013

Kiko007 no one should be reading your posts, because it's a known fact that you are a liar and troll. You are on every Android, Samsung, or Google article and preach your lies.

30. sgodsell

Posts: 7365; Member since: Mar 16, 2013

It's more than that. Google is getting access to HTC Vive tech, and HTC is getting access to Daydream, and Tango tech.

31. kiko007

Posts: 7493; Member since: Feb 17, 2016

Where in any of the articles currently posted on this deal has it said that Google was getting access to Vive IP? The Verge literally said the opposite was the case.

33. sgodsell

Posts: 7365; Member since: Mar 16, 2013

Some of the articles did say that HTC has access to some of Google's patents. Since HTC is announcing their new standalone HTC Vive in a couple of weeks. https://www.vive.com/us/product/standalone/ Tell me again that Google didn't want any access to HTC's Vive business. Especially when HTC is keeping their smartphone manufacturing.

36. trojan_horse

Posts: 5868; Member since: May 06, 2016

I can partner with another person in order to create something but without purchasing the patents of my partner... no? Just because Google is partnering with HTC fot a VR headset, it means what? That Google now has access to Vive patents? Google may have wanted access to Vive patents, but if Google acquired said patents, it's by licensing rather that by purchase, because HTC isn't selling it's VR business.

38. sgodsell

Posts: 7365; Member since: Mar 16, 2013

I never said sell. With that said. To sum up what a number of articles have been saying in regards to HTC patents. HTC is giving Google a "non-exclusive" license to HTC intellectual property as part of the deal. Now I am speculating that the patent deal includes HTC Vive patents as well. I am assuming, but you have to remember that before this deal, HTC had access to Google's worldsense. So it would make sense that Google would want access to some of the Vive patents.

41. mikehunta727 unregistered

Quick, link your meaningless GFLOP chart again

34. trojan_horse

Posts: 5868; Member since: May 06, 2016

"It's more than that. Google is getting access to HTC Vive tech, and HTC is getting access to Daydream, and Tango tech." Where does that come from? From what I've read, the HTC Vive and it's patents are NOT part of the deal with Google. "However, HTC's Vive is off the table, and will remain separate from the search giant." taken from this article:https://www.phonearena.com/news/Report-HTC-and-Google-in-final-stage-of-negotiation-regarding-sale-of-smartphone-business_id97829 Any source or link to back up your claim, sgodsell?

48. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I don't think HTC VIVE is Google primary focus. Look at the VR adoption it's still on the single digit. "HTC is giving Google a "non-exclusive" license to HTC intellectual property as part of the deal" From that statement, I would say all HTC patents. Do it matters whether its included VIVE patents my answer is no because Google focus is still a cordless VR solution called Daydream. It may matter to Google hating trolls like Kiko007 afraid that Android user would have better tech than his more expensive Apple gadget which already playing caught up in certain areas. Mobile VR being one. Personally, I am still waiting for VR to go cordless before putting my money in. I played HTC VIVE many times and the cord keeps getting into the way. Putting the headset on myself is also a big challenge.

52. trojan_horse

Posts: 5868; Member since: May 06, 2016

Yeah, I give it now, man... Google is getting a permanent OEM for it's Pixel line-up which will improve the hardware consistency of the Pixel series, instead of swapping up different OEMs every year which leads too many variations and inconsistency hardware quality, something which has plagued the Nexus phones all over the past years. On the other hand, HTC gets big enough cash to have another chance of turning it's mobile business around. Its a wi-win deal indeed.

54. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Yes! Furthermore, Samsung, LG, and Huawei all openly indicated they don't want to make Google phones. They want to focus on their own product line.

59. lallolu

Posts: 732; Member since: Sep 18, 2012

Without HTC, android probably would not have taken off at all. I don't think it is free money though. Now, google can make pixel phones without having to care about all hurdles that would have been neccessary to consider if an external company was building the pixel phones. And google will still make money from HTC's phone division. I guess HTC also got more valuable as a google owned company.

55. schinnak

Posts: 116; Member since: Oct 26, 2011

Both Moto and HTC deals were to give access to the wealth of patents to google. Dont expect any massive turn around or drastic changes in product approach under any of these brands. As far as customers are concerned, nothing much will change.

56. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

It's not all about the patents either. For example if Facebook now want to make a Facebook phone with HTC like their last attempt, HTC wouldn't be able to because a bulk of HTC resources belongs to Google. In time HTC could rebuild their team with new hire new equipment but not at the moment. A Google VP had been assigned to oversee these new acquisition and the freezing of HTC stock should be telling sign of this. The current HTC is basically being absorb into Google. The new HTC would need new team new resources or share present resources with Google. Brilliant move Google. They also manage to avoid the bad PR. So if I am a HTC staffer, I just end up with a new boss and a sense of relief as HTC is in a very bad shape before Google investment.

61. lyndon420

Posts: 6788; Member since: Jul 11, 2012

HTC has been with Android since the beginning. I may not be a fan of the pixel lineup just yet, but they produce good hardware. This partnership has a good possibility of working out for all involved.

18. Hallyu

Posts: 790; Member since: Jul 21, 2015

Noooo, Google needs to join hands wtih Samsung, not being a competitor. The demon Apple alone surpass all Android OEMs combined. But greedy Google want to beat Samsung so bad so it buying hardware business to kill Andrioid ally's Samsung. What a pathetic loser google is. It must realize it sucks at hardware, leave it all to Samsung, so that Android will have upper hand against that demon Apple. I'm hating that serpent Google now! What a shame!

20. Plasticsh1t

Posts: 3106; Member since: Sep 01, 2014

Is there are something that you don't hate you racist prick? You need to see a doctor.

26. sgodsell

Posts: 7365; Member since: Mar 16, 2013

HTC needed bailing out money. Did your Samsung lover step in to try and save HTC? No is the answer you should be looking for. As far as the demon Apple alone surpass all Android OEMs combined. You must be living under a rock, because Apple shipment numbers have been going down. As a matter of fact Huawei recently dethroned Apple's number 2 position in the world. Oh sure Apple has the most profit if that is what you are thinking about, but let's see how long Apple can go by upping the prices for less features.

37. trojan_horse

Posts: 5868; Member since: May 06, 2016

"HTC needed bailing out money. Did your Samsung lover step in to try and save HTC?" That's a funny question, sgodsell... bot companies are in different positions. Samsung will obviously want less competition in the Android market, so Samsung would not really bother about saving HTC, unless Samsung ultimately has something to benefit from that... As opposed to Google who needs the Android OS to keep growing in market share, so losing an Android OEM which has global recognition, is not something Google would welcome or be happy with.

49. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Nevertheless, I think Google move is correct, less evil. Most companies would like to swallow their competitors whole. Besides, Google also did not go with the thermal nuclear option of closing the source code of Androids, still developing it and giving it away free while their Ads dollars is shrieking. You think companies like Apple and Mircosoft would have come to the same decision. Hmmm...

53. trojan_horse

Posts: 5868; Member since: May 06, 2016

You basically repeated what I said in post #37. Google is in need of a hardware OEM for it's Pixel line-up, HTC is in need of cash to keep on running it's business... A win-win deal. "You think companies like Appleand Mircosoft would have come to the same decision." When did I say that? You're making it up.

57. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

No offense. We outsider don't know every details so I may have different opinions when more information is make available. Like when I ask myself what happen if Facebook wants HTC to make a phone? My thought in post #56. I do wish Google would use their HTC sense team to spice up their stock interface. I am a fan of HTC sense interface.

65. Highside

Posts: 197; Member since: Jan 31, 2017

Sealed Battery = FAIL No MicroSD = FAIL Paying more than $350 outright for a new unlocked flagship= LMFAO

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.