In a significant move that builds upon their previous collaboration, Google has agreed to acquire a portion of HTC’s extended reality (XR) business for $250 million, marking their second major partnership following the $1.1 billion acquisition of HTC’s smartphone operations in 2017.
The latest agreement involves the transfer of select HTC VIVE engineering staff to Google and grants the tech giant non-exclusive rights to HTC’s XR intellectual property. HTC will maintain its ability to independently use and develop the technology, continuing support for existing product lines including the VIVE Focus Vision.
This strategic acquisition aligns with Google’s recent launch of the augmented reality platform, developed in collaboration with Samsung, which aims to create a unified ecosystem for XR headsets and smart glasses. The move positions Google to compete more effectively in the rapidly evolving XR market, where companies like Apple and Meta have established strong footholds.
The deal’s structure includes several key components:
• Transfer of specific HTC VIVE engineering personnel to Google
• Non-exclusive licensing of HTC’s XR intellectual property
• Continuation of HTC’s independent XR development and existing product support
• Potential future collaboration opportunities between both companies
The transaction, expected to close in the first quarter of 2025, represents Google’s ongoing commitment to Taiwan as a crucial innovation hub. Financial advisory services for the deal were provided by Evercore, with Gibson Dunn and Tsar & Tsai serving as legal counsel.
The 2017 partnership between the companies resulted in approximately 4,000 HTC employees joining Google’s ranks, significantly expanding Google’s hardware capabilities. This latest agreement further strengthens the relationship between the two companies while potentially addressing developer concerns about Google’s long-term commitment to the XR platform.
Google’s recent partnership with Qualcomm as an early OEM partner for their XR2+ Gen 2 silicon platforms, announced before CES 2024, demonstrates their serious investment in XR technology. This acquisition is expected to accelerate the development of Google’s Android XR platform across various devices and form factors.
For HTC, the deal provides an opportunity to streamline its product portfolio while maintaining operational flexibility. The company’s continued focus on innovative VIVE XR solutions suggests a strategic realignment rather than a complete exit from the XR market.
The transaction remains subject to standard closing conditions, with both companies expressing optimism about potential future collaborations in the XR space.
