Google Scoops Up HTC's Pixel Team for $1.1 Billion

The rumors were true! Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google is essentially acqui-hiring a large number of employees from Taiwanese smartphone maker HTC. The two companies announced the $1.1 billion deal late last night, whereby roughly 2,000 HTC employees will join Google and the search giant will also obtain a non-exclusive license to HTC's patent portfolio. That's quite a price to pay, valuing each employee at around $550,000 on average. It also represents nearly 20% of HTC's head count, which totaled roughly 10,600 employees at the end of the first quarter.

Many of these engineers had already been working with Google on its Pixel phone, as HTC is the contract manufacturer for that device. The two companies have a long history of collaborating on Android devices, including the very first Android phone ever as well as Nexus phones and tablets. Google is not getting any part of HTC's manufacturing operations or virtual reality (VR) team. HTC Chairwoman and CEO Cher Wang said the deal would "supercharge" Google's hardware business, somehow while "ensuring continued innovation within our HTC smartphone and VIVE virtual reality businesses." It's kind of hard to be innovative when you sell off your best and brightest.

Image source: Google.

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Source: Fool.com