Google has beefed up its presence in the mobile market by acquiring some of HTC’s design talent for $1.1 billion.
The search engine giant announced the acquisition last year. Like most major acquisitions, though, it required government as well as corporate approval. It appears Google has met all the necessary requirements as the Mountain View company welcomed its new HTC talent on its blog. In the blog post, Rich Osterloh, Google’s senor vice president of hardware, said the acquisition will help Google produce more innovative products in the future.
So, what prompted Google to spend $1.1 billion on the Taiwanese electronics company? According to TechCrunch, the acquisition improves Google’s footprint in the mobile hardware industry. Some of the talent acquired by Google are the same employees who worked on the company’s Pixel handsets. Of course, these employees also worked on HTC’s own handsets, which consistently rank as one of the top-rated smartphone brands.
Furthermore, Google’s talent acquisition creates a new development hub in Taipei, Taiwan. In fact, this will be Google’s largest development center in Asia Pacific. Given rapid growth of mobile adoption in this region, this new center could prove instrumental in helping Google find vendors to sell its products.
It’s unclear how Google will use its new talent though experts predict the former HTC employees will work to develop new mobile devices while also improving Google’s existing line of handsets. Google is expected to release three new Pixel 3 handsets this year. With the help of former HTC employees, perhaps the next-generation Pixel smartphones will offer improved functionality over their predecessors.
Google is well known for its corporate acquisitions. In October 2017, it acquired the podcast company 60db and the AMP converter company Relay Media for an undisclosed amount. Just a few months prior, Google acquired two artificial intelligence companies, Halli Labs and AliMatter, for an undisclosed amount. Its latest acquisition of HTC talent is just one more strategic move made by the search engine giant.