Beats by Dre has been a key selling point for HTC ever since the company bought into the audio business back in 2011, but the partnership may soon come to an end. The Wall Street Journal reports that Beats is looking to buy HTC’s remaining 25% stake in the company so that it can bring in fresh investors.
Expanding the Beats product line seems to be a priority too. The WSJ goes on to say that Beats is attempting to penetrate additional audio markets, including in-car systems, speakers, and a rumoured music streaming service. HTC has been struggling with its own business over the past year, so it stands to reason that Beats would want an investor with firmer financial footing to help push new products through.
HTC acquired a 51% stake in Beats back in 2011 for $300 million, although Beats bought back 25% – and controlling interest – for $150 million a year later. Ever since then, HTC’s handsets have been branded with the Beats Audio logo and included Beats headphones in the box in an attempt to bring some added value. If Beats does buy out HTC’s remaining share, then the Taiwanese manufacturer may lose the rights to the branding, but the exact terms of the arrangement aren’t known right now.