Google pays HTC $1.1 billion for certain employees and a non-exclusive IP license

Google and HTC have just announced the completion of a deal. Under the terms of the transaction, certain HTC employees, including many involved in the development of Pixel phones, will join Google. Another part of the deal will give Google a non-exclusive license for a portion of HTC's intellectual property. In return, Google will fork over $1.1 billion to the cash-starved HTC, which has reported a loss for nine consecutive quarters. 

While previous reports claimed otherwise, HTC is keeping its smartphone designing and manufacturing operations. In the press release that was disseminated to the media this evening (U.S. time), it was pointed out that HTC is currently working on its next flagship model following this year's HTC U11. The latter is the best high-end model released by HTC in years and includes the Edge Sense feature that allow users to squeeze the device to activate certain apps and features. Rumors suggesting that the next generation of Google Pixel phones may adopt Edge Sense functionality seem more credible now with Google having access to HTC intellectual property.

Although HTC is not giving up entirely on its smartphone designing and manufacturing capabilities, it would still have a hard time returning to earlier days when it produced some of the most innovative handsets available. First as a contract manufacturer (Sony Ericsson Xperia X1, Nexus One, T-Mobile G1) and then as a brand name manufacturer (HTC Touch Pro, HTC Touch Diamond, HTC Touch Pro2, HTC Touch Diamond2, HTC One M8), HTC had made a name for itself. But while recently the company has had problems competing with Android phone manufacturers like Samsung and LG, the deal with Google gives the company the financial wherewithal to continue working on producing the next great Android handset.