Google signs agreement to acquire 2000 staff of HTC

Google has taken its hardware manufacturing business a
step further by signing an agreement to pay HTC about $1.1bn for the transfer
of about 2000 HTC staff to Google. Though Google and HTC relationship dates
back to 2008, this move is seen by many industry expert as fuelled by the need
to compete favourably with industry giants like Apple and Samsung.

“This agreement is a brilliant next step in our
longstanding partnership, enabling Google to supercharge their hardware
business while ensuring continued innovation within our HTC smartphone and VIVE
virtual reality businesses,” said Cher Wang, HTC co-founder and chair.
The new “Googlers” are not new to Google though. Many of them
are responsible for the design of the Google Pixel. Google said many of
the HTC employees who will be involved are “already working with Google to
develop Pixel smartphones”.
The deal, according to many observers, will make Google
less reliant on Samsung which has become the leading supplier of Android
“They are buying a future for Pixel, if you assume HTC
wouldn’t go on much longer on its own,” said Carolina Milanesi, an analyst at
Creative Strategies.
For the survival of the Android operating system, Google
knew they had to come up with a brand that can match, if not surpass, the
demands of Samsung smartphones. If not, in the event that Samsung decides to
develop its own operating system, that would ultimately mark the beginning of
the end of Android as there currently is no smartphone capable of competing
with the iPhone except the Samsung Galaxy brand.
To me, this is good for Google but bad for HTC. The money
may be worth it but at the long run, this will remind us all of the deal
Blackberry entered into with Google to have BBM available on Android devices.
That deal would ultimately mark the end of Blackberry as everyone felt there
was no need to buy a Blackberry phone since they could have BBM on Android
devices. Let me know what your
take is on this.

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