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?
I found that my $70 AKG mini-cans blow Beats away in terms of sound quality – I’ve always found Beats to be overly bassy and muddy. Maybe it all comes down to personal taste and the intended buyer?
I do have to admit though that I thought the sound quality from the HTC One speakers is pretty good – I expected much worse.
Nice. Did you buy you AKG online or a local retailer ?
I don’t know if I can converse with a Geelong supporter…
Kidding! Purchased them online from an Aus retailer (Headphonic)
Sorry mate. But did we beat your team during the year or finals 🙂 ..
But thanks for the Aus Retailer. I will check out their website and try to convince the CEO at home that I deserve the headphone. Did you buy in-ear or over-ear ?
Haha, disqualified for their foray into “non-approved performance enhancement”
I went for over the ear. They’re not for everyone though – some people dislike them, others rave about them. Worthwhile checking them out before purchase if you can.
Good on HTC for getting out. I never really liked beats. It’s all just a brand name to me.
That’s what it is. Everything I’ve read says the sound quality is pretty mediocre, with only the most expensive models having anything close to acceptable sound. The build quality is generally pretty good though. But you’re mostly paying for a very expensive accessory to hang around your neck. If you care about sound quality, you can easily do much better for $150 to $200.
Exactly, like the audio technica ath m50s.
Take a BeatAudio handset, add the PureXAudio Mod and you get a sound quality that BeatsAudio was supposed to deliver but never quite managed. So I agree. Nothing but a branding exercise.