According to an article from DigiTimes which cites a report from China’s Commercial Times, HTC has “entered the final stage of negotiation with Google for selling its smartphone business unit.” The article goes on to say that Google is currently considering options of either becoming a strategic partner or buying out HTC’s smartphone business. However, it’s important to note that the possible deal will not involve HTC’s Vive VR business or the entire company.

The news of the possible acquisition of HTC by Google comes on the heels of HTC reporting that August brought the company its lowest revenues in 13 years. While HTC’s consolidated revenues of $99.69 million is impressive, it represents a decline of 51.5% from July and 54.4% from last year which simply isn’t enough to continue competing in a market that is dominated by only a few players. And with demand for the company’s newest flagship, the HTC U11, having already peaked, it doesn’t look like revenues will be increasing in the very near future.

So this begs the question of why would Google be interested in buying HTC’s smartphone division? Perhaps it’s for their patents? Or maybe it’s because Google wants to start producing their own hardware as opposed to having a partner do it for them? There aren’t a lot of details available at the moment so I guess we’ll just have to wait and see.

What are your thoughts? Let us know in the comments.