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Google to buy HTC's Pixel smartphone unit in $1.1 billion deal

September 22, 2017

 

Google has decided to acquire Taiwan-based HTC Corporations’ Pixel manufacturing unit for $1.1 billion.  The all-cash deal will see Google gain 2,000 HTC employees, roughly equivalent to one fifth of the Taiwanese firm’s total workforce. It will also acquire a non-exclusive license for HTC’s intellectual property.

The deal between Google and HTC will see the latter company retain its branding, but Google will take over some of its hardware engineering resources, which should help it own even more of its device-making process.

In the past, HTC has helped create a number of Google devices, and provided the manufacturing for the Pixel, and made earlier hardware before Google took over design duties for its own smartphone hardware.

The recent move by Google can be seen as a part of its broader but nascent push into hardware space. The deal marks Google's second major foray into smartphone manufacturing space. Earlier in 2012, it acquired Motorola Mobility which it sold off to China's Lenovo Group Limited two years later.

Meanwhile, post the deal, HTC will continue onward with its own smartphone business even after sending a good portion of its talent and operations over to Google.

 
 

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