slide 1 white Beats buys back 25% of its shares from HTC

Beats audio gears is the latest craze these days, but apparently some internal issues between HTC and Beats have caused the partnership to disintegrate, somewhat.  In the company’s note to investors, HTC announced that it has agreed to let Beats buy back 25% of its total shares from HTC.

Beats audio gears is the latest craze these days, but apparently some internal issues between HTC and Beats have caused the partnership to disintegrate, somewhat.  In the company’s note to investors, HTC announced that it has agreed to let Beats buy back 25% of its total shares from HTC.

“HTC and Beats today announced a realignment of their business agreement that provides Beats with more flexibility for global expansion while maintaining HTC's major stake and commercial exclusivity in mobile.

Under the terms of the agreement, the founding members of Beats will buy back 25% of its total shares for a total of approximately 75% ownership, with HTC remaining the largest outside shareholder with approximately 25%.

Over the last year, HTC and Beats have made great progress in sound innovation, product integration and brand awareness with successes like the HTC One. HTC and Beats will continue to work closely, including a joint global marketing campaign later this year.”

HTC is anticipating a $4.8 million loss from the Beats buy back, which tags onto the 57.8% fall in net profit in Q2.

Beats recently purchased MOG—music streaming service—for $14 million, and although Beats will probably benefit from the acquisition, it is unclear what HTC will get out of it. 

HTC’s One X flagship has garnered quite a few customers through its high-end hardware, but the Beats audio integration may be one of the main selling points.