Google and HTC signs $1.1bn smartphone deal.

The Taiwanese company was once a major player in the smartphone market but has struggled to compete with the likes of Apple and Samsung. This has lead to Alphabet's Google to sign a $1.1bn (£822m) deal with Taiwan's HTC to expand its smartphone business.

Shares in HTC were suspended in Taiwan today  Thursday 21^st and Google expects the deal to close by early 2018, provided it gets the all clear from regulators.

Under the deal, Google will acquire a team of people who develop Pixel smartphones for the US company and receive a non-exclusive license for HTC's intellectual property. According to HTC half their smartphone research and development team - about 2,000 people - will go to Google.

The deal marks Google's second major foray into smartphone manufacturing  but the big winner is HTC. "It's a much needed investment as HTC struggles to maintain its smartphone business and grow its early start in virtual reality," Geoff Blaber from CCS Insight said.