Google is close to acquisition of HTC phone business
Google is close to acquisition of HTC phone business. The advance negotiations were running since the end of August this year, when several media released the news. The two companies are already close to a deal but do not mention the price, but HTC market cap is just 1.86 billion USD. The officials of Google and HTC declined to comment the news.
A possible deal would be a surprising return of Google to the hardware market three years after it sold Motorola. Owning a smartphone manufacturer would give another trump card to the company’s competition against the Apple iPhone.
In 2011, the technology giant bought Motorola for 12.5 billion USD, but three years later, in 2014, it sold it to Lenovo for only 2.9 billion USD.
According to UBS, however, the company has renewed its interest in hardware, seeing growth potential outside its advertising business.
If Google buys the smartphone side of HTC in 2017, it’ll be doing so to own a smartphone manufacturer, securing the manufacturing capacity, supply chain expertise and design talent it needs to build Pixel phones.
HTC has been struggling in the smartphone market for a while, as it failed to stop both Apple and Samsung in the premium smartphone market where it used to rule for a few years.