HTC announces $250 million deal with Google
HTC sells part of XR unit to Google for $250M
Taiwanese technology company HTC announced on Thursday that it will sell part of its extended reality (XR) headsets and glasses unit to Google for $250 million.
The deal, expected to close in the first quarter of this year, will also see the transfer of some HTC employees to the U.S. tech giant. The agreement marks a significant step in strengthening collaboration between the two companies, reports Reuters.
Google’s Strategic Focus on XR
Google, in a separate statement, highlighted that the deal would accelerate the development of its Android XR platform. The move is designed to expand and strengthen the ecosystem for XR headsets and glasses, solidifying Google's presence in the rapidly growing market for immersive technologies.
HTC has clarified that the transaction involves a non-exclusive licence of its intellectual property (IP) to Google. According to HTC Vice President and General Counsel Lu Chia-te, the company retains full rights to use, develop, and innovate upon its existing technologies without restrictions.
"This is not a buyout or an exclusive licence," Lu emphasized, signalling HTC’s commitment to remaining a competitive player in the XR space even after the transaction.
A History of Collaboration
This latest deal is not the first significant partnership between HTC and Google. Back in 2017, Google acquired part of HTC’s smartphone operations for $1.1 billion. That agreement allowed Google to enhance its Pixel smartphone lineup, laying the foundation for closer collaboration between the two firms.
With this transaction, HTC can focus on developing other aspects of its business, while Google gains additional resources to accelerate its XR ambitions. As competition intensifies in the extended reality sector, this collaboration positions both companies to innovate and capture market share.
By leveraging HTC's expertise and Google's platform capabilities, the partnership could lead to breakthroughs in immersive technologies, benefiting consumers and developers alike.
Additionally, Google is making strides to transform its Gemini chatbot into a more versatile and up-to-date platform by integrating real-time news content through a collaboration with The Associated Press.
