For $1 Billion Google to Buy Part HTC Smartphone
Google and the famous smartphone firm HTC made a deal. Alphabet Inc’s Google announced a deal of $1 billion to get the part of Taiwanese firm HTC Corp’s smartphone operations. This information is given on Thursday by a source which has direct knowledge of this matter.
This deal or partnership will not comprise the purchase of a direct stake and HTC will continue to run its remaining smartphone business said by this source. The information given source not mentioned its name because until now this information is not publicly announced.
About this deal, HTC said in a filing to the stock exchange that it would have a news conference at 10:00 a.m. Taipei time (0200 GMT) on the authorization of an “important cooperation agreement.”
The comment was declined by the Google and on Thursday HTC shares were on the trading pause. HTC is the long-time partner of Google and producers the U.S. firm’s latest Pixel smartphone.
And according to IDC the Google’s strategy of certifying Android for free and benefitting from entrenched services such as search and mans has made Android the leading mobile functioning system with some 89 percent of the global market.
An analyst Ryan Reith at research IND said: “HTC is past its prime in terms of being a leading hardware design house, mainly because of how much it has had to scale back over the years as because of declining revenues. Unless Google really wants to control hardware for its other business like Home and Chromebooks in addition to smartphones, then I don’t see this as being a bet that pays off.”
HTC is the firm which once sold one in 10 smartphones globally, has seen its market share decline abruptly in the face of intense competition from Apple Inc (AAPL.O), Samsung Electronics Co (005930.KS) and Chinese competitors.
It also shares price has also agonized sharp drops over the past couple of years. The stock has fallen 12 percent so far this year and $1.9 billion worth of the company is.
So, now Google will share the HTC smartphone operations but this news is not publicized yet. Hope so soon it will be publicized.