Sunday, August 25, 2013

Beats Considering Buying Back HTC’s Share


According to the Wall St. Journal, Dr. Dre’s Beats may be considering buying back HTC’s share of the business.

The maker of the popular Beats by Dr. Dre headphones is looking to buy out its Asian partner and bring in a new investor that can provide it with fresh funds for growth, people familiar with the matter said.

The moves come as the founders of Beats Electronics LLC music mogul Jimmy Iovine and American hip-hop producer and artist Andre Young, better known as Dr. Dre are broadening the company’s business from headphones to include speakers, audio systems in cars and consumer electronics and a soon to be launched online streaming music service.

It isn't mentioned in the article but with the much larger Beats partner HP now making Android tablets and possibly phones, there might be some conflict in Beats branding land.  HTC is obviously having some issues financially so maybe the smaller guy is getting edged out and is more willing to take the money and run.
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