HTC Sells Portion of XR Business to Google for $250 Million

HTC Sells Portion of XR Business to Google for $250 Million

Google Acquires Part of HTC’s XR Unit for $250 Million

In a notable development in the tech industry, CNBC recently reported that Google has finalized an agreement to purchase components of HTC’s extended reality (XR) unit for a substantial sum of $250 million. This strategic move will also see a transfer of select employees from HTC’s Taiwan office to Google’s headquarters in the United States.

Details of the Agreement

HTC anticipates that the deal will conclude within the first quarter of the year. Lu Chia-te, HTC’s vice president and general counsel, explained that the terms involve a non-exclusive licensing of intellectual property rights to Google.

Therefore, this is not a buyout nor an exclusive license. In the future, HTC will still retain the ability to use, utilize, and even further develop it without any restrictions.

Google’s Commitment to XR Development

In response to the acquisition, Google issued a statement, which can be found here. The statement underscored Google’s decade-long investment in extended reality technologies:

We’ve been investing in XR for more than a decade, and just last month introduced the Android XR platform with our strategic industry partners. Today we signed an agreement to welcome some of the HTC VIVE engineering team to Google, which is subject to customary closing conditions. They are an incredibly strong technical team with a proven track record in the VR space, and we are looking forward to working with them to accelerate the development of the Android XR platform across the headsets and glasses ecosystem.

Historical Context: HTC and Google Collaboration

This latest agreement is not HTC’s first collaboration with Google. In 2017, Google acquired HTC’s smartphone division for a staggering $1.1 billion, a move that similarly included the transfer of HTC personnel to Google’s team. HTC’s historical expertise in smartphone manufacturing, showcased through popular models such as the HTC One M7 and M8, made the company an appealing choice for Google, especially after the launch of the first Pixel devices.

The Future of XR Technologies

The integration of HTC’s talent and technology into Google’s operations may mark a significant step forward for XR development. As both companies leverage their strengths, the potential for innovative advancements in the extended reality landscape could reshape consumer interactions and technological experiences.

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