No comment from HTC on Google deal; shares plunge on sales data

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Buying HTC's smartphone business to get access to its patent portfolio would make sense as well, until you consider that Google could simply make a deal with the Taiwanese maker to receive a license for its patents. Google still needed help from an external manufacturer to make its new Pixel program a reality. A Google sale at this point might be the only way to save the company.

Whether Google would also be interested in snapping up HTC's Vive VR platform remains to be seen, but it does have serious ambitions in that area with the Daydream platform.

Smartphone Maker HTC Explores Strategic Options

If reports that Google is set to buy HTC are correct, it would mark something of a U-turn for the search engine giant. HTC's lengthy struggle is not news, and the company's fan base has likewise dropped over the years. It is to be noted that a close partnership already exists between the two companies. For HTC, that's an accomplishment; the company's year-on-year comparable revenue fell 28 percent in January, 18 percent in April, and 32 percent in May. It bought Motorola Mobility then sold it only a few years later and some wonder why it would repeat such a move.

For a long time HTC has been seeking for a buyer without much success.

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The result of the outcome of the negotiation is still unknown but one thing we can agree on is that Google needs its own hardware company if it plans to take on Apple. HTC's resources, combined with Google's technological prowess, will ensure that in the end, Google will emerge as the victor. How confusing was it that Google claimed the Pixel phones to be its own when they were actually built by HTC?

HTC's August revenues were the lowest in 13 years, with the firm reporting a loss of $64m, despite the recent launch of its flagship HTC U11 smartphone. It has to be noted that HTC also assembled Google's first generation Pixel phones and even the upcoming 2017 series, as well.

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