Pixel team is now in-house as Google closes $1.1 billion HTC deal

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Just a few months ago Google and HTC announced a deal that would see HTC sell a big chunk of its phone division to Google for $1.1 billion. Today, Google announced the deal has closed, and the HTC employees are officially joining Google.

For HTC, the deal is a big cash infusion at a time when the company is struggling financially. WIth HTC burning through about $75 million each quarter, Google's money gives it over three years of money to burn at the current rate. The move should also cut costs for HTC: the 2,000 employees leaving for Google represent half of HTC's R&D group and 20 percent of its 10,000 employees. HTC claims it will continue to compete in the smartphone market, even with this huge of a staff cut.

For Google, the deal will bolster the hardware group, which was formed in 2016 under former Motorola CEO Rick Osterloh. The Google Pixel, Pixel XL, and Pixel 2 smartphone were a collaboration between Google and HTC, and these 2,000 HTC employees are the ones that made up the Pixel team inside HTC. Bringing the team in-house should give Google more control over the smartphone design process, presumably bringing more unity to the Pixel line and deeper integration of hardware and software.