Google Appears Ready to Acquire HTC

A Taiwanese new agency known as Commercial Times released a report that said Google was in the last stages of acquiring part or all of HTC the smartphone maker.

This news follows another story from late last month that suggested HTC, based in Taiwan, was looking into a possible sale.

HTC was once one of the most popular makers of smartphones in the U.S., but has fallen off the majority of store shelves of wireless carriers following several unsuccessful launches of new smartphones.

HTC recently opened a new division that sells virtual reality headsets.

The reports may not be that factual since Google already has gone down this avenue before but there is a reason why there might be interest by Google in HTC.

The Taiwan based company is the builder of Google Pixel. That means it makes for a good fit for the Internet search giant as it continues catering to consumers with its smartphone brand Pixel.

However, Google has already acquired a smartphone maker in the past. It bought Motorola Mobility then sold it only a few years later and some wonder why it would repeat such a move.

The report said that HTC’s poor position financially and the desire by Google to perfect integration of software, hardware, content, network, cloud and AI was the driving force that pushed Google to have interest in acquiring some or all of the company. The new agency said that Google might make what it called a strategic investment or acquire the HTC smartphone team for R&D, which suggests the VR team would them be on its own.

One analyst said that on viewpoint of strategy, owning and operating its own operating division for mobile would offset key challenges strategically that Google’s mobile computing arm might face.

For example deeper integration of software/hardware would help to offset some of the fragmentation issues of Android.

In addition, improve development cycles that help to maximize the forward computing trends in mobile with a possible higher user adoption. It would offset the rising expenses for Distribution TAC and offset any negative dynamics in the industry resulting from the Android investigation by the European Union.

The analyst said that an acquisition by Google of HTC would not be material to Alphabet due to its cash holdings of $95 billion.

There has yet to be any official comment regarding this possible deal from either Google or HTC.

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