Google now owns part of HTC's smartphone business

Over the last decade, we have seen the biggest in the hardware business fall, tumble and some rose again. HTC has been struggling of late and it seems Google has decided to come to the rescue of its hardware partner.

It seems Google wants to again dive in smartphone manufacturing with its co-operation agreement with HTC. The Alphabet-owned company has signed a deal with HTC to buy part of its smartphone business for $1.1 Billion (roughly Rs. 707 crores).

Several of HTC's employees would be going Google, most of whom have already worked on the Pixel and Pixel 2 smartphones. Google will also get non-exclusive rights to HTC's patent IP. Moreover, HTC is free to make its own smartphones along with its Vive VR headset, iOT and work towards bringing artificial intelligence to everyday products.

The Google-HTC deal is expected to close early next year, pending regulatory approval. Google will be launching the next-gen Pixel 2 and Pixel 2 XL smartphones on October 4th, out of which the new Pixel 2 is being made by HTC. We also expect the Google Home Mini, new Pixelbook, and DayDream VR headset to make an appearance at the event.

It's also worth noting that earlier this year, HTC Vive's lead designer Claude Zellweger, had left the company to join Google's DayDream division. Before the announcement, rumors had begun circulating about an outright acquisition by Google, but the search-giant has learned from its Motorola debacle and instead decided to go with a strategic partnership instead.

It seems, from next year onwards, both Pixel devices will be built in-house at Google.