Beats Audio buys back 25 per cent stake from HTC
23rd Jul 2012 | 08:15
A year after the initial deal was struck, Beats and HTC have taken half a step apart
Less than a year after HTC splashed out a reported $300 million to acquire a 50 per cent stake in high-end audio provider Beats, the two companies have revealed Beats has now brought back half of this figure.
Describing the move as a 'realignment of the business agreement', the buy back sees Beats regain a 75 per cent controlling stake in its future direction whilst HTC will retain the exclusive rights to utilise the company's hugely popular audio technologies in smartphone devices.
Making the announcement, a joint statement by the two parties said the move "provides Beats with more flexibility for global expansion while maintaining HTC's major stake and commercial exclusivity in mobile."
The unnamed spokespeople added: "Over the last year, HTC and Beats have made great progress in sound innovation, product integration and brand awareness with successes like the HTC One. HTC and Beats will continue to work closely, including a joint global marketing campaign later this year."
Ending the run of impressive headphones being bundled with its music orientated headphones, the announcement comes as a major blow for HTC as the Taiwanese handset manufacturer and former Android powerhouse looks to once again find its footing and challenge the rising dominance of Samsung's 'Galaxy' branded line of devices.
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