Google has its fingers in many pies. The company has smartphones, tablets, computers, smart homes, search, AI, and more. So it’s really no surprise that the company is expanding its interests to include extended reality (XR). So much so, Google announced that it would buy part of the HTC XR unit in a deal worth $250 million.
Google’s expanding ambitions
Google has dabbled in VR/AR projects in the past. There was Google Cardboard which was the company’s attempt at making affordable VR headsets powered by our smartphones. We also cannot forget Google Glass, the company’s attempt at making a pair of smartglasses. So it didn’t come as a surprise to learn that Google is now looking into XR, having announced its Android XR platform in 2024.
This deal with HTC will bring some of the HTC VIVE engineering team over to Google. This will help Google’s efforts in further developing its Android XR platform across various wearables, such as headsets and glasses. That being said, HTC has made it clear that this is not a buyout.
Speaking to reporters, HTC vice president and general counsel Lu Chia-te said that it is merely the company granting Google the intellectual property rights. It is also not an exclusive license. This will allow HTC to retain its intellectual property, which it can then use and further develop if it chooses.
According to Lu, “Therefore, this is not a buyout nor an exclusive license. In the future, HTC will still retain the ability to use, utilize, and even further develop it without any restrictions.”
The decline of HTC’s hardware business
HTC used to be the darling of the phone industry. The company came up with many industry firsts back in the day. Remember its attempt at creating a glasses-free 3D smartphone? Or when it introduced a smartphone with dual cameras before dual cameras were a thing?
Over the years, HTC has slowly been stepping away from the hardware business. Back in 2017, after several missteps, HTC eventually sold its mobile unit to Google. The company started to branch out into other areas, like with the HTC Vive where the original device was created in collaboration with Valve.
It seemed like a new direction the company was heading towards, but now Google buying its XR unit signals that HTC might also want to step away from that area. It remains to be seen what Google will do with its new purchase. Assuming all goes well, the deal is expected to close in the first quarter of 2025.
