Is Alphabet Inc (GOOGL) About to Buy HTC's Smartphone Business?


Now, given that Google's last smartphone business acquisition Motorola didn't go so well, the new report around HTC needs to be taken with a pinch. There's no word on how much Google is offering the company, but the deal reportedly only involves HTC's smartphone research-and-development team - not the division that works on the HTC Vive VR headset. It's worth remembering that after manufacturing both the Pixel and Pixel XL, HTC is also said to be behind the upcoming Google Pixel 2 (LG is thought to be producing the Pixel XL 2).

Google is now in talks with HTC about a potential acquisition of their smartphone business, a report by GSMArena reads. Google said at the time that it didn't want Motorola's patents to get into the hands of Microsoft or Apple.

Once a leading smartphone company, HTC has seen its shares plummet to 66.70 TWD down from 84.10 TWD over the a year ago.

If reports that Google is set to buy HTC are correct, it would mark something of a U-turn for the search engine giant.

Smartphone Maker HTC Explores Strategic Options

Google and HTC have worked closely in the past, as the Taiwanese firm launched the first Android device, for starters.

There are few companies involved in the smartphone business that have had it as tough as HTC. In fact, Google bought Moto mobility solution in 2012, then sold off the same to Lenovo within two years.

HTC was once one of the more popular smartphone makers in the United States but has recently hit a wall with several unsuccessful smartphone launches. Since Google and HTC are pretty close, thanks to the "Nexus" project, it only made sense for them to partner up once again. HTC's resources, combined with Google's technological prowess, will ensure that in the end, Google will emerge as the victor. Owning HTC would allow Google to compete with Samsung in a more direct fashion, as it can speed losses around its larger, very profitable business; HTC and many other Android OEMs do not have this luxury.