Beats to split with HTC?

Alan O'Doherty
August 19, 2013

The runaway success that is headphone manufacturer Beats is reportedly looking to buyout HTC’s 25% stake in the company.

The Wall Street Journal reported that industry insiders have claimed that Beats is looking for “fresh funds for growth” and intends to buy back HTC’s one quarter share. HTC first invested in the headphone manufacturer back in 2011 with a 50.1% stake, though Beats bought back half of this initial investment the following year.

Since HTC’s initial investment the two companies have been enjoying dramatically different fortunes with Beats seeing revenues increase five-fold from 2010 to reach $1 billion while HTC have struggled financially and have recently invested in a new high-profile advertising campaign in an effort to turn their luck around.

At present, all of HTC’s high end handsets are branded with the Beats logo and the enhanced sound they claim Beats integrated technology affords them is a key selling point. What will happen to this relationship if Beats is to buy out HTC is still unclear.


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