It seems that HTC VR’s business has reached a dead end and is no longer as profitable as the Taiwanese company wants. Fortunately, there are bigger players in the VR industry who can’t wait to get their hands on HTC’s engineers.

In this regard, HTC has just announced its agreement with Google to sell part of its XR team. The agreement under which HTC will receive $250 million in cash from Google specifies that some HTC employees from the company’s XR team will join Google.

In addition, Google will receive a non-exclusive license to HTC’s XR intellectual property (IP). Both companies have confirmed that they will explore future collaboration opportunities, so future transactions between Google and HTC may be announced in the coming months.

According to In HTC’s statement, the final agreement will strengthen its strategy of continuous development around the XR ecosystem, allowing the company to come up with more streamlined products with a cross-platform focus, as well as better operational efficiency and financial flexibility.

HTC claims that it will continue to provide innovative VIVE XR solutions, while supporting and developing existing product lines and solutions without interruption.

On the other hand, Google hopes to strengthen and accelerate its commitment to the Android XR platform across the headphone and glasses ecosystem, helping drive the XR industry. The acquisition looks like a major investment in Taiwan as a major hub for innovation and technology.

Only time will tell if moving a top-notch technical team to Google with a proven track record in the VR/XR space will help Google accelerate Android XR development.

According to HTC, the deal announced today is subject to customary closing conditions and is expected to close in the first quarter of 2025.