Google buys HTC's Pixel smartphone team

Google and HTC has announced a $1.1 billion deal that lets Google acquire a team of HTC talent – many of whom have already worked on Pixel smartphone line. The deal also includes non-exclusive license for HTC intellectual property, to support the Pixel smartphone family.

Google’s SVP, Rick Osterloh in a blog post said the deal would help Google to bolster the search engine giants smartphone and hardware business. Last year the company introduced Made by Google products designed in-house including Pixel phones, Google Home, Google WiFi, Chromecast Ultra and Daydream View. The company will unveil its 2017 line of products on October 4.

As for HTC, it said, it is not getting out of smartphone business altogether and is still game. In fact the Taiwanese smartphone maker is currently working on its next flagship. It also said it would continue to build the virtual reality ecosystem to grow its VIVE business, while investing in other next-generation technologies, including the Internet of Things, augmented reality and artificial intelligence.

This is the second time Google is involved in a big smartphone business purchase. The Pixel maker back in 2012 acquired Motorola for $12.5 billion, before selling it to Lenovo for a fraction of what was originally paid.

But, Google and HTC's relationship goes all the way back to 2008. Together HTC and Google, formed a strategic alliance and launched the first ever Android smartphone, HTC Dream aka T-Mobile G1, followed by Nexus One in 2010, Nexus 9 tablet in 2014, and the first Pixel smartphone in 2016. One of the second-gen Pixel phone will also be manufactured by HTC, and use the company's Edge Sense technology.

The HTC-Google deal is subject to regulatory approvals and customary closing conditions. It is expected to close by early 2018.

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