MOUNTAIN VIEW, Calif. and TAIPEI, Taiwan, Sept. 20, 2017 /PRNewswire/ -- Google (NASDAQ: GOOG, GOOGL) and HTC Corporation (TWSE: 2498) 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 next-generation 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.
Evercore served as financial advisor to HTC and Gibson Dunn and Tsar & Tsai acted as legal counsel. Lazard served as
financial advisor to Google and Cleary Gottlieb and Lee & Li acted as legal counsel.
About HTC
HTC Corporation aims to bring brilliance to life. As a global innovator in smart mobile and virtual reality
technology, HTC has produced award-winning products and industry firsts since its inception in 1997, including the critically
acclaimed HTC U series line of smartphones and industry-leading HTC VIVE virtual reality system. The pursuit of brilliance is at
the heart of everything we do, inspiring best-in-class design and game-changing mobile and virtual reality experiences for
consumers around the world. HTC is listed on the Taiwan Stock Exchange (TWSE: 2498). www.HTC.com
About Google
Google's mission is to organize the world's information and make it universally accessible and useful. Through
products and platforms like Search, Maps, Gmail, Android, Google Play, Chrome and YouTube, Google plays a meaningful role in the
daily lives of billions of people and has become one of the most widely-known companies in the world. Google is a subsidiary of
Alphabet Inc.
Disclaimer:
This press release contains forward ‐ looking statements which may include projections of future
results of operations, financial condition or business prospects based on our own information and other sources. Actual results
of operations, financial condition or business prospects may differ from those expressed or implied in these forward ‐
looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition,
international economic conditions, supply chain issues, exchange rate fluctuations and other risks and factors beyond our
control. The forward ‐ looking statements in this release reflect the current belief of HTC as of the date of this
release. HTC undertakes no obligation to update these forward ‐ looking statements for events or circumstances that
occur subsequent to such date.
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SOURCE HTC Corporation