Google buys part of HTC maker for $ 1.1 billion

HTC logo. JOSEP LAKE AFP

Google takes control of the HTC company as a majority shareholder to boost its own concepts in mobile phones - its range of PIXEL phones are made by other companies - , and in voice assistants - here wants to compete with the future HomePod Apple and Alexa's Echo range, developed by Amazon. With its new alliance, Google also hopes to improve competition in two technologies on the rise: virtual reality and augmented reality, a sector in which the Taiwanese HTC has a prominent position with the Vive system . By getting it, Google will try to stand up to Microsoft's Hololens system and Facebook's Oculus.

HTC, which will keep the phone manufacturing under its own brand, has signed a cooperation agreement to develop phones with Google and an agreement to use their patents for ten years by the search engine. It will transfer to its new buyer about 2,000 employees, according to the financial director, Peter Shen Daobang.

HTC President Cher Wang said that this transaction "ensures continuity in innovation" in the "virtual reality" smartphone division, thanks to the injection of funds, according to EFE. The company was lagging behind in the race with Samsung and Apple, as well as in stiff competition with Chinese manufacturers such as BBK , low-cost high-end phones .

A relationship from years ago

The relationship of Google and HTC comes from afar. The first Google mobile with its Android operating system, called Nexus, was already manufactured by HTC in 2010. Google has turned to different manufacturers. But now, buying the majority stake in HTC enables you to more closely follow market trends and research without having to derive the fabrication later on to third parties. Precisely, next October 4 Google will hold an event to unveil its new models of mobile, the most powerful of the PIXEL 2 (the range that happened to the Nexus) is manufactured by HTC . There will be another secondary model that will be from LG.

For the next releases, Google will directly control a manufacturer, and that will allow you to focus your efforts on research, marketing and distribution in a more efficient way and give a boost to the Android operating system. The Mountain View operating system currently has a share of more than 85% of the smartphone market but are positioned in the same range as Apple in terms of value perception.

Rumors and speculation of a possible buyout, the stock price HTC was suspended on Thursday. The Taiwanese company then called its employees to make the announcement. The move draws attention because Google already tried to have a manufacturer under its umbrella, with the purchase of Motorola. Then, as it will do now, the company kept the manufacturer's brand. But in the case of Motorola, three years later it was sold to Lenovo .

It is expected that HTC will be under the leadership of Google to maintain a consistent line in terms of brand conception and final products. Augmented reality, virtual and enriched (a hybrid format between them) is one of the fields that Google wants to lead with the acquisition of HTC.

by: EL PAIS