Google May Be Buying the Company Behind the Vive VR System

Google May Be Buying the Company Behind the Vive VR System

One of the market watchers estimated the number of HTC engineers to be transferred to Google to be some hundreds, and said that HTC seems intent on keeping some part of the smartphone business as the company is continuing to work on its own brand handsets.

Lately, Google has shown signs of taking an Apple-like strategy towards its products.

"These future fellow Googlers are incredible folks we've already been working with closely on the Pixel smartphone line", Osterloh said, adding that the deal includes a non-exclusive license for HTC intellectual property.

Financial terms of the deal weren't disclosed, but a Reuters report that broke just before the deal was announced said Google paid about $1 billion.

At the time, Google said it deemed the overall operation to be a "success," as it retained Motorola's most valuable asset, its patent portfolio.

HTC was the fifth biggest smartphone manufacturer in the world in 2011, according to figures from Statistica, accounting for 10.7 per cent of the market in Q2 that year.

The deal for HTC's smartphone design unit would give the U.S. tech giant more control of its mobile handset hardware as it seeks to bolster its challenge to market leaders including Apple and Samsung.

Again from Google: "It's still early days for Google's hardware business".

Its not clear if the acquisition would be made by Google or its parent company, Alphabet. In addition to the talented and experienced team of professionals, Google will continue to have access to HTC's IP to support the Pixel smartphone family. Those types of features require powerful phones, and HTC could help Google make them.

HTC is also closely tied to the debut of 4G cellular networks in the United States.

HTC has been operating at a loss for more than a year and was apparently unlikely to survive without outside assistance.