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Why did Beats buy back stake from HTC?

Written by Andre Yoskowitz @ 24 Jul 2012 7:42 User comments (1)

Why did Beats buy back stake from HTC? Earlier this week, we reported that just a year after they sold 50 percent of the company to HTC, Beats Audio had bought back 25 percent of that stake.
HTC originally purchased their 50 percent stake for $300 million, and Beats bought their 25 percent share back at the same equivalent price, $150 million. Beats now has a controlling 75 percent stake. Beat's official explanation is that now they will have "more flexibility for global expansion."

Allegedly, however, there is more to the story.

According to one source, the handset maker did not meet "all of the financial commitments it has made to Beats."

Regardless of past wrongs, HTC will keep exclusivity on the Beats Audio tech for mobile, meaning you won't be seeing it in Samsung, Motorola or other company's phones anytime soon. Additionally, the two companies will also work on a major joint marketing campaign later this year.

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1 user comment

126.7.2012 12:35

Probably sounds like a way for Beats to keep from suing HTC & also freeing them up to approach other competitors. They 'say' you won't see it in Samsung or Motorola devices, but that could be nothing more than a 6 month contractual hiatus.

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