Feeds

HTC disses Dr Dre by diluting Beats deal

Reduces investment in hip hop headset house

Designing a Defense for Mobile Applications

Taiwanese handset maker HTC has pulled around half of its stake in Beats Electronics, the audio kit maker co-founded by US hip hop star Dr Dre, less than a year after buying a 51 per cent majority share in the company.

HTC said in a Taiwan Stock Exchange filing that it sold 25 per cent of its stake in the company for $150m.

That leaves it as the largest shareholder with just over 25 per cent, with the remainder back in the hands of the company’s founders, Dr Dre and CEO Jimmy Iovine.

An HTC statement sent to Taipei Times had the following:

HTC and Beats today announced a realignment of their business agreement that provides Beats with more flexibility for global expansion while maintaining HTC’s major stake and commercial exclusivity in mobile.

The rather abrupt move has had many commentators scratching their heads.

The Taiwanese handset maker announced in August 2011 that it was buying into Beats for around $300m, in a deal which it hoped would give it a competitive edge by boosting the audio capabilities of its smartphones.

It didn’t hang around, incorporating Beats technology into the Sensation XE in September, the Sensation XL soon after and the One Series this year, without ever setting the industry on fire.

The firm cut the ribbon on a new Taipei HQ in June but it will need more than that if it’s to turn around its business in the face of increasing competition from Apple, Samsung and others, a slowdown in spending in Europe and continued legal troubles with Apple which delayed sales in the US earlier this year.

HTC is yet to respond to a request for further comment. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.