$250 Million! HTC Sells Partial XR Business to Google

On January 23, 2025, HTC announced the sale of a portion of its XR (Extended Reality) business to Google for $250 million. This marks another significant move for HTC, following its $1.1 billion sale of part of its smartphone business to Google in 2017.

According to the agreement, HTC will receive $250 million from Google, and a segment of HTC's XR research and development team will transition to Google. Additionally, HTC’s XR intellectual property will be licensed to Google on a non-exclusive basis. The transaction is expected to close within the first quarter of this year, with both companies expressing interest in exploring further collaborations.

Lu Jia-de, HTC's Vice President and General Counsel, clarified that this agreement is neither an acquisition nor an exclusive license. "HTC retains the full ability to use, utilize, and further develop its intellectual property without restrictions," he stated.

HTC emphasized that the deal aligns with its long-term strategy to strengthen its presence in the XR ecosystem, streamline its product lineup under the VIVE brand, and focus on future platforms, operational efficiency, and financial flexibility. The company will continue investing in XR technology, including its VIVE Focus Vision products, while further advancing its VR ecosystem and expanding into areas like artificial intelligence and the metaverse. HTC remains committed to its VIVERSE vision, aiming to navigate the evolving global economy with innovation and resilience.

Google, in its official statement, highlighted its enthusiasm for the agreement. "We are excited to welcome members of HTC VIVE's engineering team to Google, pending customary closing conditions. Their expertise and achievements in the VR industry will accelerate innovation, enhance the Android XR platform, and strengthen the ecosystem for head-mounted devices and smart glasses," Google noted.

This agreement comes at a time when major tech players are vying for dominance in the XR space. Despite its decade-long efforts in XR, Google trails competitors like Apple and Meta in the virtual reality market. The acquisition of HTC's XR business is expected to bolster Google's Android XR ecosystem. In December 2024, Google had announced a partnership with Qualcomm and Samsung to develop a new Android XR platform, combining its advancements in AI, AR, and VR to deliver enhanced experiences for next-generation devices.

Taiwan has been a key strategic base for Google since 2021, serving as its largest hardware R&D hub outside the U.S. "With this agreement finalized, we will further expand our presence in Taiwan, working with Google's global teams toward long-term goals of AI-first products, services, and ecosystems," Google stated.

HTC believes this collaboration will accelerate the development of the Android XR platform and drive innovation in the XR industry. The transfer of technical experts from HTC to Google represents a significant investment in establishing an innovation and technology base in Taiwan.

HTC has previously collaborated with Google, selling part of its smartphone business, including the team behind the Pixel phones and some non-exclusive patents, to Google in 2017. This earlier deal reduced HTC's smartphone R&D capacity but allowed the company to focus on its XR initiatives.

HTC continues to advance its VIVE Focus Vision headsets and expand into applications such as education, training, and healthcare. Recent innovations include the VIVERSE Create tool for virtual space development and updates to its VIVE ORIGINALS platform, BEATDAY.

However, despite its efforts in XR, HTC has struggled financially. In Q3 2024, the company reported revenue of NT$770 million, with an operating loss of NT$1.13 billion and a net loss of NT$880 million. Over the first three quarters of 2024, HTC recorded revenue of NT$2.135 billion, with an operating loss of NT$3.52 billion and a net loss of NT$2.601 billion, marking its 26th consecutive quarter of losses.