Beats Electronics looks to sever HTC links
Audio specialists Beats Electronics are reportedly considering a buyout of Taiwanese smartphone maker HTC’s stake in its business as part of moves to expand its consumer electronics and auto tech.
Beats Audio and HTC have been intertwined since August 2011 when the smartphone maker purchased a 50.1 per cent stake in the former for $300, helping to power the sound functionality on its devices.
Since that time the fortunes of both firms have diverged rapidly with Beats proving increasingly dominant in its sector whilst HTC stutters.
Should the deal proceed in Beats’ favour it could open up the possibility of rival manufacturers gaining the ability to license Beats Audio for their own devices.
The move coincides with a move by Beats to find a fresh investor to drive its expansion over concerns that HTC does not have the requisite financial firepower to push its wares.