Google said to be eyeing purchase of 'Pixel 2' manufacturer HTC's smartphone division to c...

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Reports are emerging from China that a deal that would result in Google taking a controlling interest in -- or buying out completely -- HTC's struggling smartphone business.




The Chinese-language Commerical Times was first to note the negotiations. The deal does not appear to be for the entirety of HTC. HTC's Vive division is a discrete entity, insulated from the smartphone division.

Earlier on Thursday, HTC posted its lowest revenue in over a decade. The company reported $99.7 million in earnings, a 51.5 percent drop as compared to July, and a decrease of 54.3 percent when compared to the year-ago month.

HTC's earnings for June and July were buoyed by the release of the U11 flagship phone -- but the financial effect of the release appears to have only lasted for two months.

The deal seems remarkably similar on the surface to Google's $12.5 billion buy of Motorola that finalized in 2012, before it sold off the patent-stripped carcass to Lenovo for $2.91 billion in 2014.

Google and HTC are not strangers to each other. Google's rumored "Pixel 2" line of phones that will go head-to-head with Apple's fall releases are reportedly under construction by HTC now, and the Pixel and Pixel XL devices were manufactured by the company as well.
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Comments

  • Reply 1 of 39
    This sounds familiar...can’t quite place it...
    cincyteeleavingthebiggmike54jbdragonsuddenly newtonpscooter63RacerhomieXwatto_cobra[Deleted User]
  • Reply 2 of 39
    I'm sure this will be another massive acquisition that will be money well spent.

    LOL!
    mike54watto_cobra[Deleted User]
  • Reply 3 of 39
    gatorguygatorguy Posts: 19,315member
    This sounds familiar...can’t quite place it...
    Yeah, the article says "The deal seems remarkably similar on the surface to Google's $12.5 billion buy of Motorola that finalized in 2012, before it sold off the patent-stripped carcass to Lenovo for $2.91 billion in 2014."
    mike54revenantavon b7
  • Reply 4 of 39
    Hmmmmmm.... Second time's a charm?

    watto_cobra
  • Reply 5 of 39
    I  can't decide if this is a good move or a last desperate thow of the dice by Google to keep relevant in the Smartphone market.
    I looked at a Pixel and found that it was the same price as the iPhone 7.
    I wonder how many they actually sold at that price?
    mike54RacerhomieXwatto_cobra[Deleted User]
  • Reply 6 of 39
    gatorguygatorguy Posts: 19,315member
    I'm sure this will be another massive acquisition that will be money well spent.

    LOL!
    I wouldn't anticipate this one being be all that massive with HTC's value plummeting. That's of course if there's any truth to it anyway. FWIW I don't see "buying" HTC as very likely. Strategic investment? Might be a wise move depending on the dollars and commitment involved... IF there is one. 
    edited September 2017
  • Reply 7 of 39
    They're looking to buy HTC because HTC is struggling and because of Google's new ambitions to be in control of their own hardware this would be a good strategic move. This really has nothing to do with the iPhone 8.
    tycho_macuser
  • Reply 8 of 39
    gatorguygatorguy Posts: 19,315member
    I looked at a Pixel and found that it was the same price as the iPhone 7.
    I wonder how many they actually sold at that price?
    Only around 1.5M IIRC from reading. Hobby numbers.
    jbdragonRacerhomieX
  • Reply 9 of 39
    gatorguygatorguy Posts: 19,315member
    sog35 said:
    gatorguy said:
    I looked at a Pixel and found that it was the same price as the iPhone 7.
    I wonder how many they actually sold at that price?
    Only around 1.5M IIRC from reading. Hobby numbers.
    probably half of that was Google employees
    Hey, could be. Nothing official was ever announced AFAIK
  • Reply 10 of 39
    Hmmmmmm.... Second time's a charm?

    I think it's "Third time's a charm" so this one is going to flop and it will be the next one that finally turns out OK. Maybe they'll buy Samsung in five years.
    watto_cobra
  • Reply 11 of 39
    lkrupplkrupp Posts: 6,440member
    Dracarys said:
    They're looking to buy HTC because HTC is struggling and because of Google's new ambitions to be in control of their own hardware this would be a good strategic move. This really has nothing to do with the iPhone 8.
    Eventually everybody comes around to Apple's business model, which is to control the hardware and the software to maximize the customer experience.  Microsoft is trying it, Google now rumored to give it a try. 
    tmaymike54pscooter63watto_cobra
  • Reply 12 of 39
    Dracarys said:
    They're looking to buy HTC because HTC is struggling and because of Google's new ambitions to be in control of their own hardware this would be a good strategic move. This really has nothing to do with the iPhone 8.
    If Google had a strong and continuing reputation for being a pro-consumer retailer or consumer electronics company, it might make sense. They have instead a history of neglect and disinterest.
    radarthekatwatto_cobra
  • Reply 13 of 39
    I suspect they'll buy it
    Strip it of any patents so as to bolster Google's portfolio
    sell off the remains

    HTC will be dead within a year if Google buys it
    SpamSandwichLukeCagewatto_cobra[Deleted User]
  • Reply 14 of 39
    jungmarkjungmark Posts: 6,556member
    Google buys it for $4 billion. Fails at making new phones. Sells business to another party for $1 billion. Wall Street claims it is a success. 
    leavingthebiggSpamSandwichmike54patchythepirateslprescotttycho_macuserpscooter63Rayz2016watto_cobra[Deleted User]
  • Reply 15 of 39
    Google is trying to copy Apple at least from the introduction of the iPhone ten years ago. After trying the ‘software alone way’ —a.k.a. Android and partners— it tried Motorola and now they are trying again the hardware plus software integration. But they are failing in the deep understanding of Apple's ADN in the subject. Apple's actions are based in an Alan Kay quote: "People who are serious about software should make their own hardware." - Alan Kay The problem with Google's implementation is that Google IS NOT SERIOUS about software! Just, for them, it is so disposable as diapers or toilet paper. Do not mention the Google's apps graveyard. Just see wha happened to AR/VR and lots of other software: When Apple got ARKit they made ARCore… So, I wish them good luck!
    watto_cobra
  • Reply 16 of 39
    lmasanti said:
    Google is trying to copy Apple at least from the introduction of the iPhone ten years ago. After trying the ‘software alone way’ —a.k.a. Android and partners— it tried Motorola and now they are trying again the hardware plus software integration. But they are failing in the deep understanding of Apple's ADN in the subject. Apple's actions are based in an Alan Kay quote: "People who are serious about software should make their own hardware." - Alan Kay The problem with Google's implementation is that Google IS NOT SERIOUS about software! Just, for them, it is so disposable as diapers or toilet paper. Do not mention the Google's apps graveyard. Just see wha happened to AR/VR and lots of other software: When Apple got ARKit they made ARCore… So, I wish them good luck!
    I won't even wish them good luck. ;)
    watto_cobra
  • Reply 17 of 39
    let's say they do buy it, not just pour money into it. the next phone would not likely be the best one out there. teams will need to meet, partnerships/deals for parts/licensing need to be worked out, form factor and what not.
    or they just pay a bunch of money to have reviewers rate how great the camera is (even though they also say how it is not as good as ____).


    watto_cobra
  • Reply 18 of 39
    jbdragonjbdragon Posts: 1,887member
    sog35 said:
    gatorguy said:
    I looked at a Pixel and found that it was the same price as the iPhone 7.
    I wonder how many they actually sold at that price?
    Only around 1.5M IIRC from reading. Hobby numbers.
    probably half of that was Google employees


    Ya, that's a really sad number. Apple sells that many iPhones in what, a hour at launch? Android has been marketed as the CHEAP Phones. That was Google Nexus Line of phones. Cheap! There's no money in cheap phones. Apple is making over 90% of the Profits, Samesung makes most of the rest and that's from their S and Note series phones, not all the cheap to mid range phones they also sell. Do the math, there's very little money to split between everyone else and some have to be losing money.

    So Google's answer is to copy the iPhone, both in looks and price. The Pixel looks like a iPhone clone and it's priced the same and look what happened. Few people wanted to pay iPhone prices for a iPhone Clone, when they could just get a iPhone.

    I don't see how buying HTC is going to help them. HTC is in the tank. Google can't sell Pixel phones. How does buying HTC and still having HTC make them, though under Google change anything?

    Rumor is they're now going to make AirPod clones. I can't wait for the fandroid excuses on that. How it's not copying and that they aren't ugly. I'm pretty sure they're not going to work anywhere like Apple's but the same old way all the other completely wireless headphones work which is not as good.

    Google see's all this money coming in for Apple and making most of the profits and think they can get some of that. Still just another Android phone in a flood of cheap Android phones. They've been trying to be more like Apple, but it still hasn't paid off for them.
    tycho_macuserwatto_cobra
  • Reply 19 of 39
    gatorguygatorguy Posts: 19,315member
    jbdragon said:
    sog35 said:
    gatorguy said:
    I looked at a Pixel and found that it was the same price as the iPhone 7.
    I wonder how many they actually sold at that price?
    Only around 1.5M IIRC from reading. Hobby numbers.
    probably half of that was Google employees


    Ya, that's a really sad number. Apple sells that many iPhones in what, a hour at launch? Android has been marketed as the CHEAP Phones. That was Google Nexus Line of phones. Cheap! There's no money in cheap phones. Apple is making over 90% of the Profits, Samesung makes most of the rest and that's from their S and Note series phones, not all the cheap to mid range phones they also sell. Do the math, there's very little money to split between everyone else and some have to be losing money.

    So Google's answer is to copy the iPhone, both in looks and price. The Pixel looks like a iPhone clone and it's priced the same and look what happened. Few people wanted to pay iPhone prices for a iPhone Clone, when they could just get a iPhone.

    I don't see how buying HTC is going to help them. HTC is in the tank. Google can't sell Pixel phones. How does buying HTC and still having HTC make them, though under Google change anything?

    Rumor is they're now going to make AirPod clones. I can't wait for the fandroid excuses on that. How it's not copying and that they aren't ugly. I'm pretty sure they're not going to work anywhere like Apple's but the same old way all the other completely wireless headphones work which is not as good.

    Google see's all this money coming in for Apple and making most of the profits and think they can get some of that. Still just another Android phone in a flood of cheap Android phones. They've been trying to be more like Apple, but it still hasn't paid off for them.
    Oh, geez, things are hardly as dire as you seem to think at Google.  Any company sitting on $100B in cash thereabouts should be able to weather a few rough seas. 
    And no one is reporting Google is cloning Airpods. Don't mistake building a Google-assistant enabled headset as copying anything Apple did with Airpods. From limited reports so far they are very different products with very different capabilities. 
    revenant
  • Reply 20 of 39
    gatorguy said:
    This sounds familiar...can’t quite place it...
    Yeah, the article says "The deal seems remarkably similar on the surface to Google's $12.5 billion buy of Motorola that finalized in 2012, before it sold off the patent-stripped carcass to Lenovo for $2.91 billion in 2014."
    I’m glad you see the absurdity of it too. (Oh, or were you trying to be a jackass? Often hard to tell)
    edited September 2017 watto_cobra
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