Audio equipment brand Beats is buying back 25% of its shares from HTC, the smartphone manufacturer announced today. As you may know, the brand is best known for its “Beats by Dr. Dre” headphones.
According to the companies, the purpose of this operation is to
provide Beats “with more flexibility for global expansion while
maintaining HTC’s major stake and commercial exclusivity in mobile.”
As you may remember, HTC became a majority investor in the company in
August 2011, and went on to launch several Beats-enabled
smartphones. Yet, this agremeent means that it will now only control
around 25% of Beats.
Still, this announcement doesn’t come as a surprise, as rumors had already emerged that
HTC and Beats’ relationship would change due to dissatisfaction on
HTC’s side. At the time, HTC CEO described these reports as
“categorically inaccurate.” It is not hard to tell why the company tried
to hold back the news: according to its announcement, HTC anticipates
to lose $4.8 million from the disposal.
Earlier this month, the manufacturer already reported a 57.8% fall in net profit for Q2 despite lowered forecasts. As for Beats, it recently confirmed the acquisition of music streaming service MOG for $14 million, and it remains to be seen whether HTC will still benefit from this deal.