Google is doubling down on extended reality (XR) technology with a new agreement to purchase a portion of HTC’s XR business for $250 million. This marks the second significant collaboration between the two companies, following Google’s $1.1 billion acquisition of HTC’s smartphone operations in 2017.
Under the deal, HTC will transfer select Vice engineering and XR team members to Google, while granting Google non-exclusive rights to certain XR-related intellectual property. HTC retains the ability to continue using and developing that technology independently. The transaction, subject to customary closing conditions, is expected to be finalized in the first quarter of 2025, according to statements from both companies.
For Google, the move reinforces its investment in the newly launched Android XR platform. By bringing in HTC’s experienced XR talent, Google aims to accelerate development across the headset and smart glasses space. The company says, the deal demonstrates the company’s dedication to pushing the boundaries of VR and AR hardware to keep pace in a rapidly evolving market where other technology giants like Apple and Meta currently lead. It may also allay some concerns that developers have had about Google’s commitment to its new Android XR platform, noting that Google has never been shy about leaving its users and developers in the lurch in capricious downgrades of products and applications.
Both HTC and Google suggest there could be more joint initiatives down the line. While the immediate focus is on integrating the transferred HTC staff and technology into Google’s XR operations, additional collaboration opportunities remain on the table.
