It's official! Beats buys back HTC's stake in the company
0. phoneArena 27 Sep 2013, 07:26 posted on
HTC's 25% stake in Beats Electronics was sold back to the company for $265 million; the Taiwan based manufacturer had originally owned 50.1% of the company, a purchase made at the top of the market in 2011. A year later, Beats founders Jimmy Iovine and Dr. Dre had purchased half of HTC's majority ownership back...
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1. datphoneguy (Posts: 154; Member since: 15 Sep 2013)
Hmm...so I wonder if this means no more beats branding on HTC products going forward...?
2. Shatter (Posts: 2036; Member since: 29 May 2013)
It didn't even do anything special anyway, it was a software equalizer that would work on every phone if you installed it.
5. roldefol (Posts: 4097; Member since: 28 Jan 2011)
I bought the first US Beats phone, the Rezound, and I agree fully. It gave me a really nice pair of Beats earbuds, but the software aspect was a total gimmick. It basically just punched up the highs and lows and muddied up the midrange. It's nothing more than a fixed EQ.
One more misstep by HTC.
13. KingKurogiii (Posts: 5704; Member since: 23 Oct 2011)
it actually makes a difference on the One. the sound was very clean with Beats Audio on. you could get the volume louder with it off but the cleaner sound is a good trade off.
7. AppleHateBoy (unregistered)
I hope this is the case. Nobody wants Beats Audio. Good Riddance. BoomSound will do HTC more good. Plus, HTC got some much needed money.
3. Kurai (unregistered)
You're just paying for the name of beats, not for company's devices. Beats is overpriced and too much overrated . . . They don't even sound that good and some just use it as an expensive accessory hanging on their necks. For the software, You can just root your device and install dpsmanager or if you don't like rooting, there are many apps in the playstore.
HTC shouldn't have partnered with beatch in the first place.
4. Beijendorf (Posts: 336; Member since: 27 Aug 2013)
Good riddance. Beats is utterly useless and HTC needs a monetary injection anyway.
6. Shatter (Posts: 2036; Member since: 29 May 2013)
If they really cared about music it would come bundled with a Wolfson DAC in the phone+ good headphone amp, power amp preloaded and come with like a $100 pair of sennheisers.
10. VLaRueC (Posts: 171; Member since: 18 Dec 2012)
^ doesn't know anything about the HTC One's hardware specs...
11. Shatter (Posts: 2036; Member since: 29 May 2013)
It has a decent amp/dac better than most phones. Still a $50 fiio owns it. Galaxy s4 international has the best sound quality/least distortion, htc one has best built in amp. Your better off using something like a fiio e11 though it is better than any phones built in audio will ever be.
8. structureman116 (Posts: 139; Member since: 14 Sep 2010)
Maybe now that they own themselves again, Beats will drop the prices on their drastically overpriced speakers and headphones! Their headphones and bluetooth speakers (Pill) sound like crap when you compare them to equally priced Bose items. Its the same thing with the Jawbone stuff! Way overpriced for the crap sound you get!
9. joey_sfb (Posts: 4961; Member since: 29 Mar 2012)
Jawbone do sound good to me but not beat. Bose also sound unbalance, good low end but vocal range and high end lack details.
14. izim1 (Posts: 120; Member since: 04 Feb 2013)
Not "much" better. But better nonetheless. Not to mention at half the price...
15. RomeoJDR (Posts: 242; Member since: 09 Dec 2011)
Bose is MUCH better than Beats. The only reason some people feel they lack mids and highs is because it actually has a low end. Beats is kinda like the Apple in the audio world. They market themselves on top. At least Apple puts out premium products for their premium prices, whereas Beats puts out fair products priced premium.
16. TheLolGuy (Posts: 483; Member since: 05 Mar 2013)
Yeah, thats Dr. Dre 'hustlin' his customers don't you think?
20. Shatter (Posts: 2036; Member since: 29 May 2013)
Beats/skull candy/99% of the headphones are walmart are bad, bose and those random brands are meh, good headphones usually require an Amp a few of those brands are: Sennheiser, AKG, Ultrasone, Beyer, Denon. If your looking for bass avoif the sennheisers/AKGs, the other 3 have some amazing bass headphones that make beats look like a toy from Mcdonalds.
17. TattooedMailman (Posts: 13; Member since: 31 Mar 2013)
I had a pair of Beats earbuds. They sounded better than your standard pair but weren't anything special. The price tag alone made me regret buying them.
18. Taters (banned) (Posts: 6474; Member since: 28 Jan 2013)
I wouldn't want to be associated with suck T C either. Good job beats.
21. TheMan (Posts: 455; Member since: 21 Sep 2012)
HTC loses financially in the deal, as well as its competitive loss. As I recall, an SEC filing reported a $300 million investment in Beats. In receiving only $265 million, the company loses a nominal $35 million (-4% IRR).
22. izim1 (Posts: 120; Member since: 04 Feb 2013)
The maths aren't your strength, huh? Hopefully you don't work in finance....
"SEC filing" "investment" "(-4% IRR)" lol..
Go over the numbers again, wall st, and see if you can come up with why youre wrong and this actually made HTC money on the deal alone.....
24. Taters (banned) (Posts: 6474; Member since: 28 Jan 2013)
It doesn't matter though. Whatever profit they eek out here and there goes to Apple now. That's what they get for letting Apple get away with extortion though.
23. roldefol (Posts: 4097; Member since: 28 Jan 2011)
If that's true, at least they cut their losses. That's $265 million more liquid than they had last week, and HTC needs the cash.
26. izim1 (Posts: 120; Member since: 04 Feb 2013)
It's not true. Don't take financial advice from that guy. They didn't pay $300mil for the 25% of shares they just sold back for $265mil. They paid $300mil for 51% of the shares. They had already sold the other half of the 51% back for around $140mil last year...