It's official! Beats buys back HTC's stake in the company

It's official! Beats buys back HTC's stake in the company
Last month, there was some speculation that Beats Electronics was going to buy back the 25% stake in the company held by Taiwan manufacturer HTC. On Friday, that speculation became fact as 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.

HTC has fallen on hard times despite the success of its most recent flagship model, the Android powered HTC One. Beats has gone from strength to strength and has moved beyond headphones and earphones to car audio and is supposedly working on a streaming online music service.

HTC says that Beats remains an important partner and the company still uses the Beats Audio sound system on its handsets. The deal is expected to close by the end of the year.

source: NASDAQ via AndroidCentral



1. datphoneguy

Posts: 155; Member since: Sep 15, 2013 I wonder if this means no more beats branding on HTC products going forward...?

2. Shatter

Posts: 2036; Member since: May 29, 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: 4744; Member since: Jan 28, 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: 5713; Member since: Oct 23, 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 unregistered

Good riddance. Beats is utterly useless and HTC needs a monetary injection anyway.

6. Shatter

Posts: 2036; Member since: May 29, 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: 189; Member since: Dec 18, 2012

^ doesn't know anything about the HTC One's hardware specs...

11. Shatter

Posts: 2036; Member since: May 29, 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: 142; Member since: Sep 14, 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: 6794; Member since: Mar 29, 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.

12. Shatter

Posts: 2036; Member since: May 29, 2013

Bose isn't much better than beats.

15. RomeoJDR

Posts: 245; Member since: Dec 09, 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: Mar 05, 2013

Yeah, thats Dr. Dre 'hustlin' his customers don't you think? Haha.

20. Shatter

Posts: 2036; Member since: May 29, 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: Mar 31, 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

Posts: 6474; Member since: Jan 28, 2013

I wouldn't want to be associated with suck T C either. Good job beats.

19. paceman

Posts: 38; Member since: May 23, 2013

Beats is CRAP!

21. TheMan

Posts: 494; Member since: Sep 21, 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).

23. roldefol

Posts: 4744; Member since: Jan 28, 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.

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