Google and HTC Announce $1.1 Billion Cooperation Agreement

Google and HTC Corporation (TWSE: 2489) today announced a definitive agreement

under which certain HTC employees – many of whom are already working with Google to develop

Pixel smartphones – will join Google. HTC will receive US$1.1 billion in cash from Google as part

of the transaction. Separately, Google will receive a non-exclusive license for HTC intellectual

property (IP).

The agreement is a testament to the decade-long strategic relationship between HTC and Google

around the development of premium smartphones.

This agreement also supports HTC’s continued branded smartphone strategy, enabling a more

streamlined product portfolio, greater operational efficiency and financial flexibility. HTC will

continue to have best-in-class engineering talent, which is currently working on the next flagship

phone, following the successful launch of the HTC U11 earlier this year. HTC will also continue to

build the virtual reality ecosystem to grow its VIVE business, while investing in other nextgeneration

technologies, including the Internet of Things, augmented reality and artificial

intelligence.

For Google, this agreement further reinforces its commitment to smartphones and overall

investment in its emerging hardware business. In addition to the talented and experienced team

of professionals, Google will continue to have access to HTC’s IP to support the Pixel

smartphone family. Additionally, this agreement also represents a significant investment by

Google in Taiwan as a key innovation and technology hub.

“As a pioneer of the smartphone market, we are very proud of our history of innovation. Our

unmatched smartphone value chain, including our IP portfolio, and world-class talent and system

integration capabilities, have supported Google in bolstering the Android market,” said Cher

Wang, Chairwoman and CEO of HTC. “This agreement is a brilliant next step in our longstanding

partnership, enabling Google to supercharge their hardware business while ensuring continued

innovation within our HTC smartphone and VIVE virtual reality businesses. We believe HTC is

well positioned to maintain our rich legacy of innovation and realize the potential of a new

generation of connected products and services.”

“HTC has been a longtime partner of Google and has created some of the most beautiful,

premium devices on the market,” said Rick Osterloh, Senior Vice President of Hardware at

Google. “We're excited and can't wait to welcome members of the HTC team who will be joining

Google to fuel further innovation and future product development in consumer hardware.”

The transaction, which is subject to regulatory approvals and customary closing conditions, is

expected to close by early 2018.