Taiwanese electronics giant HTC has announced that it will sell part of its extended reality (XR) headset and glasses unit to Google for $250 million. The transaction, which is expected to close in the first quarter of this year, also includes the transfer of certain employees to the US tech company.
The deal highlights the ongoing collaboration between the two companies, which have a history of working together. In 2017, Google purchased a portion of HTC’s smartphone operations for $1.1 billion, marking a significant strategic move at the time. This latest deal, however, focuses on HTC’s XR division, a growing segment in the technology industry that is expected to play a crucial role in the development of virtual reality (VR), augmented reality (AR), and mixed reality (MR) applications.
HTC’s XR strategy
HTC has long been a key player in the development of virtual reality headsets, with its Vive product line gaining significant attention from both consumers and businesses. However, as competition in the XR market has intensified in recent years, HTC has faced challenges in maintaining its market leadership. Despite this, the company has continued to push forward with innovations in XR technology and virtual environments.
Through this deal, HTC aims to refocus its efforts on its broader portfolio of technologies while still retaining a stake in the growing XR industry. The company clarified that it is not fully exiting the XR business, and it will continue to develop XR technologies and use its intellectual property (IP) without restrictions.
Google’s growing XR ambitions
The deal is seen as a strategic move for Google, which has been increasing its focus on the XR market. The tech giant’s Android platform, already a dominant force in the smartphone industry, has been expanding its reach into the world of virtual and augmented reality. Google has invested in a number of XR-related projects, including the development of its ARCore platform, which enables developers to create AR experiences for Android devices.
By acquiring part of HTC’s XR division, Google is looking to accelerate the development of its Android XR platform and strengthen its position in the ecosystem for XR headsets and glasses. The move is also expected to help Google compete with other tech giants, such as Facebook (now Meta) and Apple, who are also investing heavily in the XR space.
In a statement, Google said the latest acquisition would help speed up the development of its XR ecosystem, with a particular focus on headsets and glasses. Google’s vision for the future includes building a more connected and immersive world through AR and VR technologies, and this acquisition will contribute to that goal.
Intellectual property and collaboration
HTC’s Vice President and General Counsel, Lu Chia-te, addressed the matter of intellectual property rights in a statement, clarifying that the deal is not an exclusive buyout. Rather, HTC has granted Google a non-exclusive license for its XR-related intellectual property. This means that while Google will gain access to HTC’s XR technologies, the Taiwanese company will still retain the right to use, develop, and commercialise these technologies in the future.
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Lu stressed that HTC would not be restricted from further developing its XR capabilities, and that it would continue to explore additional opportunities in the XR sector. The deal marks the beginning of a new phase in the collaboration between HTC and Google, with both companies looking to build on their previous successes and explore new avenues for growth in the XR market.
Looking ahead
The deal between HTC and Google is expected to reshape the XR landscape and contribute to the rapid evolution of virtual and augmented reality technologies. As both companies focus on building out their XR capabilities, the broader industry will be watching closely to see how these developments impact the future of immersive technologies.
HTC’s sale of part of its XR unit to Google is just the latest in a series of moves that signal the increasing importance of XR in the tech world. With Google now more deeply invested in the XR space, and HTC continuing to innovate with its own technologies, the stage is set for significant advancements in the way we interact with digital environments in the years to come.
