Google’s ‘big bet on hardware’ sees it acquire some HTC employees and IP for $1.1 billion

Comments

  • thereasoner

    Well, it looks like just one ODM making Pixels going forward. HTC is a good choice, hopefully this amounts to better supply/stock of Googles phone and bigger launches onote carrier and onore countries.

  • It’s Me

    So HTC gets some cash, gives up some IP and staff but keeps making their own phones (that are then inferior unless they are allowed to keep using the IP they ditched). Google gets some staff and some patents but no manufacturing capability.

    A bit of a strange agreement but makes sense in light of the Motorola fiasco. This saves the later step of liquidating the majority of the company they don’t want and losing even more money.

    • Captain Pokemon

      In short, Google spent 1.1 billion dollars just to hire a bunch of talented engineers.

    • It’s Me

      This is probably how BB should have handled it when the wanted to get rid of their engineers by moving them to Ford. They made the resign and then begin new employment with Ford, which opened them up to wrongful dismissal claims and loss of severance.

      HTC had their excess staff in a separate division, which is what Google is buying, so the staff technically aren’t immediately changing employers with the agreement. Smart. Avoids lawsuits.

    • Captain Pokemon

      I just find 1.1 billion dollars too expensive to acquire 2000 employees.. no manufacturing assets nor IP. Correct me if I am wrong here.

    • It’s Me

      It’s a fair bit but I don’t think it’s uncommon anymore for these giants to spend such sums.

      Hopefully it’s not another short lived adventure that sees them laid off.

    • Captain Pokemon

      I actually have a funny feeling that it will be another short lived story.

    • Smanny

      Google does have a “non exclusive” intellectual property license to HTCs patents. So I think Google will most likely get access to some of HTCs VR patents as well.

    • Smanny

      There are a number of articles stating that Google does have access to HTCs patents. It’s suppose to a “non exclusive” license to HTCs intellectual property. Most likely it will include access to HTCs Vive VR patents. At least I hope it does.

    • It’s Me

      Exactly. They are licensing patents that anyone else can also use, instead of buying patents to own like they did with moto eventually.

    • Smanny

      The Motorola patents saved Google form a ton of litigation from both Apple and Microsoft. Because both of those guys were after Google with their ligations. Well they are still after Google, but those 17000 patents saved Google billions every year. You have to remember Motorola had a ton of essential patents in every smartphone.

    • It’s Me

      Have they? When moto started using them to sue Apple, they didn’t do very well with them. When google tried to used them, they didn’t seem to do very well. Did they ever win a case with them? Clearly they didn’t help stop them from getting sued, so how is it saving them money?

    • Smanny

      From what I read Google was looking for increase on those essential patents. But it didn’t work. So they had to pay the same tiny fees for those essential patents.

    • It’s Me

      They wanted a war chest of patents to threaten others with to dissuade them from suing. Didn’t work. They even loaned some of them out to OEMs that were caught in patent lawsuits, but from what I recall, they were all thrown out. They just weren’t effective weapons. SEP patents aren’t very useful as weapons, because that’s part of being SEP patents.

      It’s like buy a water gun to go t a gun fight when everyone knows it’s a water gun. It’s not going to be effective.

  • Polin Huang

    Can’t wait for not htc made Google phones pixels are such solid phones.

  • Ipse

    Motorola anyone?

    • It’s Me

      Looks like they learned from that fiasco. Instead of spending money to buy a bunch of assets they will later dispose of at huge losses, they are just spending massive amounts of money but not buying anything. Problem solved 😉

  • The Finder

    If HTC is going to continuing making phones and supporting older phones, maybe it will improve the speed of Android updates every year. There’s a lot of potential here for impressive things to happen. I’m glad for HTC, they needed help, and Google is the best partner they could ask for. I’m hoping for the best with this partnership!

  • Smanny

    A number of other articles have mentioned that Google is getting access to HTCs intellectual property, which is a non exclusive license. So most likely they are getting access to HTCs VR technology as well. I certainly wouldn’t be surprised if that was part of the deal.

    Btw don’t forget that Google and HTC together are announcing a standalone HTC Vive October 4th, and it is called the HTC Vive Focus. It is a standalone VR headset with cameras in front, and with Daydream support as well.