Cash strapped HTC have accepted an offer from Beats by Dre to purchase back the remaining 25% stake that remained from the original 50% stake they purchased back in August 2011.
HTC initially purchased a stake in Beats worth $300 Million for 50.1% of Beats by Dre, but a year later Beats purchased half of that stake back leaving HTC with a 25% share in the audio company. When Beats decided during the northern summer to expand into more consumer electronics such as car stereos and higher end stereo equipment as well as a music streaming service, the rumour began that they would also look to purchase back the remaining shares with capital gained from an investor and now that has come to pass.
With most higher end HTC phones coming with some manner of pre-order bonus in the form of Beats headphones or Pill portable stereo these days, it will probably be a thing of the past very soon.
HTC itself could do with this cash injection, with their latest forecasts for the upcoming third quarter not looking terribly promising. The deal to purchase back HTC’s stake in Beats is looking to be completed by the end of the year.
Did you get a pair of Beats headphones before this partnership petered out?