8/19/2013 10:33:36 AM
Beats 'seeking to end HTC partnership'
Headphones and speakers manufacturer Beats is looking to buy out HTC's stake in the company, bringing to an end the company's two year relationship.
The troubled Taiwanese phone maker owns a 25% stake in Beats and according to the Wall Street Journal, the company is looking to find a new investor to buy that out and fund future growth. HTC took a majority 50.1% stake for $300m in 2011, only to sell half of that back to Beats' co-founders Jimmy Iovine and hip-hop producer Dr Dre a year later for $150m. HTC integrated Beats' speaker technology onto its smartphones, with the brand seen as a means to tap into the youth market.
However, HTC has seen its sales collapse to a level before it rode the wave of early demand for Android smartphones. Last month it warned it was likely to report a loss for its third quarter trading. The manufacturer has seen an exodus of senior executives as it bids to turn its business around. Last week, it launched its biggest marketing campaign to date, putting Iron Man star Robert Downey Jr at the centre of its advertising.
Author: Graeme Neill