Google Signs $1.1 Billion Deal with HTC

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Google is stepping up its presence in the mobile handset market by securing a $1.1 billion contract with HTC Corporation.

About HTC

Founded May 15, 1997, HTC is one of the world’s leading manufacturers of smartphones and tablet computers. While it originally produced mobile devices for Windows, it soon transitioned to Android. In fact, HTC is credited with launching the world’s first Android smartphone, the HTC Dream, in September 2008.

But HTC has struggled to maintain its dominance in the mobile market. A 2013 report found that HTC’s stock had dropped by 90 percent since 2011. Analysts attribute several factors to this decline, including increased competition as well as poor upper-level management practices.

Google’s Deal with HTC

However, the future is looking a little brighter for HTC, as the Taiwanese mobile giant recently signed a $1.1 billion deal with Google. As explained by CNET, this isn’t a full-blown corporate acquisition; rather, the deal allows Google to hire talent from HTC while also giving Google some of its intellectual property rights.

So, how what will the new deal between HTC and Google entitle exactly? Unfortunately, neither company has revealed the complete details. We only know that Google has paid HTC $1.1 billion to acquire some of its talent and licence to use its intellectual property. With that said, there’s a good chance this will lead to new Google/HTC-powered Android devices in the near future.

On the other hand, this could be another dead end for Google. In 2012, Google acquired Motorola Mobility for a staggering $12.5 billion. Surprisingly, though, Google ended up selling Motorola to Lenova for just $2.9 billion a few years later.

Regardless of what happens, this deal is good news for HTC. Statistics show that HTC’s share of the Android market is 0.6 percent. In comparison, it peaked in 2011 with a market share of 10.7 percent. Perhaps this deal with Google will give HTC the boost it needs to further increase its presence in the ever-growing Android market.

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