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

The Power of One eBook: Top reasons to choose HP BladeSystem

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. ®

Top three mobile application threats

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
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.