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Google, HTC Announce $1.1 Bln Cooperation Agreement

Alphabet Inc.'s (GOOGL,GOOG) Google and HTC Corp. (HTCCY.OB,HTCKF.OB,HTCXF.OB) announced a definitive agreement by 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).

This agreement also supports HTC's continued branded smartphone strategy, enabling a more streamlined product portfolio, greater operational efficiency and financial flexibility. 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.

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.

The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close by early 2018.

by RTT Staff Writer

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