HTC and Beats break ties, stake returned for $265 million
HTC has announced that it has sold back its stake in Dr Dre’s Beats Audio brand for $265 million, ending a partnership that never quite took off the way either party envisioned. HTC’s minority share of 25 percent will be returned to Beats after the latter called upon investment firm The Carlyle Group to help complete the buyback.
What could this mean for the future of Beats and HTC? It’s unclear whether or not the mobile maker plans to continue licensing technology from Dre’s headphone company. It makes us wonder if HTC will still place an emphasis on audio capabilities like BoomSound in future releases.
HTC, however, has bigger things to worry about, and $265 million extra in the bank for shares in a company that wasn’t taking them where they needed to be seems like a good deal. If HTC wants to turn its fortunes around, a split was in the best interest of both parties.
[via NYTimes]