Google buys HTC smartphone team for $1.1 billion

Google closed a deal with HTC to bolster its smartphone hardware dreams. Under the deal, the Taiwanese company gets a much needed cash infusion of $1.1 billion. In exchange, it transfers many of its R&D employees to Google and gives the search giant a non-exclusive license to some of its intellectual property. Many of the employees that are part of this deal were already working on Google projects like the Pixel smartphones.

The transaction gives HTC the opportunity to grow its VR, AR, IoT, and AI businesses. On the other hand, it doesn't exclude HTC from the smartphone market as the company still retains enough engineering talent to develop its next flagship phone:

The agreement is a testament to the decade-long strategic relationship between HTC and Google around the development of premium smartphones, according to the companies.

This agreement also supports HTC's continued branded smartphone strategy, enabling a more streamlined product portfolio, greater operational efficiency and financial flexibility, they said. HTC will continue to have engineering talent work on its next flagship phone, following the launch of the HTC U11. HTC will also continue to build the virtual reality (VR) ecosystem to grow its Vive business, while investing in other next-generation technologies, including the Internet of Things (IoT), augmented reality (AR) and artificial intelligence (AI).

The deal is expected to close by early 2018.