Google acquires part of HTC’s Vive XR team for $250 million in cash

It looks like HTC’s VR business has hit a wall and is no longer as profitable as the Taiwanese company wants. Luckily, there are bigger players in the VR industry that can’t wait to get their hands on HTC’s engineers.

In that regard, HTC has just announced its agreement with Google to sell a part of its XR team. The agreement under which HTC will receive $250 million in cash from Google specifies that certain HTC employees from the company’s XR team will join Google.

Besides that, Google will receive a non-exclusive license for HTC’s XR intellectual property (IP). Both companies confirmed they will explore future collaboration opportunities, so future transactions between Google and HTC might be announced in the coming months.

As per HTC’s statement, the definitive agreement will strengthen its strategy of continued development around the XR ecosystem, allowing the company to come up with more streamlined products with a focus on platforms, as well as better operational efficiency and financial flexibility.

HTC claims that it will continue to deliver innovative VIVE XR solutions, with existing product lines and solutions supported and developed without interruption.

On the other hand, Google hopes to strengthen its commitment to the Android XR platform and its acceleration across the headset and glasses ecosystem, which helps drive the XR industry. The acquisition feels like a significant investment in Taiwan as a key innovation and technology hub.

Only time will tell whether or not the transfer to Google of a top-tier technical team with a proven track record in the VR/XR space will help Google accelerate the development of the Android XR platform.

According to HTC, the transaction announced today is subject to customary closing conditions and is expected to close in Q1 2025.