What does Google want with HTC's smartphone business?

Google has announced it's acquiring a $1.1bn chunk of HTC's smartphone business, and with it providing the once leading Taiwanese phone brand a much needed lifeline. But what does Google want with part of a smartphone business? Google gains half of HTC's research and development team – about 2,000 people – and a non-exclusive license for HTC's intellectual property, allowing it to take advantage of some of HTC's advances in smartphone technology. HTC gets a cash injection, which will help it survive in some very competitive markets, and Google gets to continue its "big bet on hardware" according to Rick Osterloh, the company's senior vice president for hardware. It's "a business decision to have access to one of the best R&D teams", said Neil Shah, research director at Counterpoint Technology Market Research.