Google buys part of the business to HTC for $1.1 billion

Moscow. September 21. INTERFAX.RU – Google Inc will pay $1.1 billion for a part of the business of the Taiwanese electronics manufacturer HTC Corp.

The total capitalization of HTC is estimated at $1.9 billion an Accurate estimate of what business volume of the Taiwanese company takes on Google, not given.

In the message Google notes that the company will join the HTC team that helped her in the development of mobile Pixel.

In accordance with the terms of the deal, Google will also receive a non-exclusive license to use the intellectual property of HTC.

Google was attracted by HTC as a contract manufacturer last year for the release of Pixel, the flagship smartphone from the American company.

“We are investing in the long term,” said Rick Osterloh, who heads the division of Google responsible for the production of the hardware. – Employees of HTC, are members of the Google team are amazing people, with whom we previously worked closely in the production line of smartphones Pixel, and we look forward to what we can do as a team.”

HTC, formerly among the leaders of the smartphone market, significantly worsened the positions in this sphere in recent years. In 2011, the share of Taiwanese companies in the global smartphone market stood at 9%, it has sold about 45 million devices, according to data from Counterpoint Research.

Last year HTC’s sales amounted to only 12.8 million smartphones, and the company’s market share fell to less than 1%. The HTC figures do not include sales of Pixel, which amounted last year to 1 million units, noted in Counterpoint.

HTC will retain a division, a manufacturer of virtual reality helmets Vive, one of the most popular devices in this category, the newspaper the Wall Street Journal.

For Google buying HTC is the second acquisition of the hardware manufacturer. In 2012, the American company bought Motorola Mobility for $12.5 billion, the deal has been seen rather as a purchase of a huge set of Motorola patents, and later Google sold the company to China’s Lenovo Group.