Google Is Acquiring HTC For $1Bn, But Here Is The Catch On The Deal

Search engine giant Google has just announced that it is buying part of HTC smartphone business for a deal record of $1billion.

The deal will neither be a direct stake on HTC smartphone business nor does it encompasses HTC line of virtual reality headsets business as HTC will still go about their other part of smartphone business and businesses not in the smartphone line.

Part of HTC smartphone business acquisition by Google was aimed at consolidating the search giant hardware line in the mobile business, for the deal will also see Google gaining half of HTC’s research and development team.

For the duo of Google and HTC, the deal is yet another win-win situation as Google would be making cash provision for HTC, enabling them boost their low smartphone business share, since competitors like Samsung, Apple and some Chinese brands have caused HTC smartphone market share to continue to dwindle over time, while on the other hand for Google, it will be gaining some of the needed intellectual expertise and advanced smartphone technology that HTC is bringing.

It is important to note here that this is not the first time Google is doing joint venture business with HTC as Google have in the past and present partnered with HTC for the production of Google’s Nexus and Pixel line of smartphones and even one of Google 
upcoming Pixel 2 devices is still being handled by HTC.

Finally, it is also not the first time that Google is acquiring some stakes in similar fashion from known smartphone business brand, for in 2011; Google acquired part of Motorola smartphone business for $12.5bn until 2014 when it sold Motorola to Lenovo.