HTC mum on report it will sell remaining stake in Beats
CNATAIPEI, Taiwan -- Taiwan's HTC Corp. declined to comment on Monday on a report that U.S. headphone maker Beats Electronics plans to buy out the 25-percent stake HTC currently holds in the headphone company.
August 20, 2013, 12:02 am TWN
Beats Electronics, maker of Beats Audio and the popular Beats By Dr. Dre line of headphones, is looking to expand its business by replacing HTC with a new investor that can “provide it with fresh funds for growth,” the Wall Street Journal reported on Monday, citing people familiar with the matter.
HTC declined to comment on the rumored buyout plan but stressed that the two companies have maintained solid business ties.
“HTC and Beats have enjoyed a solid business partnership in delivering superior mobile audio experiences for consumers which include a line of HTC devices integrated with Beats sound innovations available in markets globally,” HTC said in a statement.
“We are impressed with their performance and consistent high standards,” the Taoyuan-based company said.
HTC acquired a controlling 51-percent stake in Beats Electronics for US$309 million when the Taiwanese manufacturer was at its peak in 2011.
But the struggling smartphone maker sold a 25-percent stake in Beats Electronics last year, saying that the share sale “provides Beats with more flexibility for global expansion while maintaining HTC's major stake and commercial exclusivity in mobile.”