Feeds

Dr Dre's Beats plans to drop HTC, hook up with rich mate – report

Hip-hop star's headphones firm tries to ditch Taiwanese mobile maker

5 things you didn’t know about cloud backup

Beats Electronics is reportedly looking to ditch its HTC partnership and bring in a new investor with fresh funds instead.

The maker of the popular Beats by Dr Dre headphones, which is branching out into speakers, car audio systems and online music streaming, wants to find a new investor that will help the business grow, people familiar with the plans told The Wall Street Journal.

The company, founded by music mogul Jimmy Iovine and hip-hop artist and producer Dr Dre, wants a new partner to provide debt financing and possibly take a minority stake in the firm and hopes to buy out HTC's 25 per cent stake in the business.

Beats already tried unsuccessfully earlier in the summer to raise $700m in financing from credit markets to buy out HTC's stake, but investors weren't interested in the deal.

The firm later asked for a smaller debt, limiting the proceeds that would go to shareholders to $150m, but withdrew the offer when markets became more inhospitable in June on concerns about the Federal Reserve's interest rate policies.

However, markets have now recovered and Beats may look to try with investors again in Autumn, the source whispered.

The company originally sold a 50.1 per cent stake to HTC for $300m two years ago, but bought back half the stake at around half the price a year later. The partnership saw HTC using the firm's audio software in its phones and bundling its mobes with Beats headphones. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.