Beats Audio Buys Back Ownership Shares From HTC
Beats Audio is no longer half-owned by the team at Korean smartphone maker HTC. The company announced in a press release on Saturday that it was in the process of repurchasing enough shares to take over a majority interest in the product line.
Beats will purchase back 25% of the company from HTC, giving Beats Audio a 75% share while HTC will continue to maintain 25% of the company’s stocks.
The ownership alignment is meant to give Beats more flexibility when it comes to global expansion while still providing HTC with the commercially exclusive rights in the mobile devices sector.
Under its current mobile agreement with HTC the Beats Audio platform will be sold exclusive through HTC smartphones and tablet based device while Beats Audio can continue to sell its sound technology to notebook and desktop manufacturers.
The announcement comes just weeks after Beats Audio managed to scoop up online music streaming service MOG for $14 million.
The company hopes to better expand its offerings in the audio space while at the same time working to brand itself as a separate entity. Beats started as a joint venture of Jimmy Iovine, Monster, Inc., and music super-producer and rap pioneer Dr. Dre.
At this time it is unclear how Beats Audio plans to use its majority ownership stake to help increase its global presence.
Beats Audio and HTC originally teamed up to include a pair of red Beats Audio headsets with each HTC smartphone sold. In April HTC stopped placing the headsets with its smartphones after realizing that consumers didn’t want to pay a premium for a smartphone that offered superior sound quality with high-end headphones.
