TRENDING NOW: Largest known comet ever discovered, and we will be able to see it

Beats wants to part ways with HTC, looks for investor to buy stake

Beats looking to cut losses and part ways with HTC.

@CharlesJGantt
Published Mon, Aug 19 2013 5:02 PM CDT   |   Updated Tue, Nov 3 2020 12:21 PM CST

Headphone maker Beats by Dre is looking to sever its partnership with smartphone manufacturer HTC in hopes that it will pick up a new investor who can pump new money into the company. The midrange audio accessory manufacturer is said to be planning to buy out HTC as it begins talks with an investor that will provide debt financing and who will take a minority ownership in the company in the coming weeks.

Beats wants to part ways with HTC, looks for investor to buy stake | TweakTown.com

The two companies first partnered up in 2011 when HTC began losing ground to rival Samsung. The partnership was expected to breathe new life into sales of the Asian smartphone manufacturer's products, but the numbers that were predicted never materialized. HTC invested $300 million for a 50 percent stake in the company as well as exclusively of the Beats audio IP used in smartphones.

Earlier this year, HTC sold back 25 percent of its stake to Beats for $150 million but retained the mobile exclusively rights. With a final buyback imminent, sources are saying that HTC will most likely retain those exclusivity rights after the deal is finished. On the bright side, the deal will inject some much-needed cash into HTC's coffers, which could set it up to once again claim the top spot in the mobile market.

NEWS SOURCE:bgr.com

A web developer by day, Charles comes to TweakTown after a short break from the Tech Journalism world. Formerly the Editor in Chief at TheBestCaseScenario, he now writes Maker and DIY content. Charles is a self proclaimed Maker of Things and is a major supporter of the Maker movement. In his free time, Charles likes to build just about anything, with past projects ranging from custom PC cooling control systems to 3D printers. Other expensive addictions include Photography, Astronomy and Home Automation.

Newsletter Subscription

Related Tags

Newsletter Subscription
Latest News
View More News
Latest Reviews
View More Reviews
Latest Articles
View More Articles