Soon after the advent of HTC’s acquisition by Google, this news was realized. Google officially made an acquisition of HTC for a value of USD 1.1 billion. HTC is also guaranteed to get the transaction amount in full cash. But this acquisition is only done by Google to some HTC businesses, which focus on devices like mobile and virtual reality (VR). In the agreement, Google is entitled to a number of HTC teams, some of whom are trusted in the development of Pixel phones made by Google. Includes a number of non-exclusive licenses belonging to HTC.
5 years ago HTC is the world’s fourth-largest smartphone vendor with a 9% market share. But the fierce competition makes them stagger and currently its market share is less than 1%. Since last month, it has been spread speculation that HTC wants to sell part or all of the company. They have two divisions, the smartphone division, and the virtual reality device division. Google is now the strongest buyer of HTC buyers. They have actually bought another Motorola phone vendor in 2011 for $ 12.5 billion.
Motorola was bought primarily because Google wanted to own a patent technology from the legendary company. Three years later or in 2014, Google released Motorola to vendors from China, Lenovo. However, Motorola’s own ownership status by Google is actually less durable. Google has sold Motorola to a Chinese company, Lenovo.
HTC itself is rumored to have started preparing to sell the smartphone division since last month. This is due to their smartphone sales are getting down and difficult to rise again. Meanwhile, in its official statement, Google said, for the company, the agreement will further strengthen Google’s commitment to the smartphone business and the overall investment in hardware that is now growing. For example, Pixel smartphone, Google Home, Google Wifi, Daydream virtual reality headset, and Chromecast Ultra.
Meanwhile, The Guardian wrote in its report, Google and HTC are partners in Google Pixel smartphone manufacturing.
HTC has failed to develop its market share
One of the most likely reasons that make HTC reluctant to stop all its smartphone business is the company still has assets, such as stores around the world. The possibility of HTC considering, there will be no consumers who want to buy a smartphone from a falling company. By not closing the rest of the smartphone division after a deal with Google, the company still has time until their latest flagship device is released.
After removing some of the mobile division, HTC will be more focused to make a virtual realityVive headset to be successful globally. However, it seems that up to several months into the future HTC still survive as one of the smartphone vendors.
Meanwhile, the reason behind Google’s acquisition is touted as an Internet giant’s effort to realize its ambition to seriously wrestle the mobile phone business and VR.
Furthermore, Google Senior Vice President of Hardware Rick Osterloh said the acquisition of HTC will help Google to realize the innovation of the tools Made of Google in the future.
The devices in question include the Pixel phone, Google Home, DayDream VR Headset, and Chromecast.