Back in 2011 smartphone company HTC invested $300 in digital sound company Beats Electronics. The partnership allowed HTC to use Beats technology on their mobile devices to raise its brand awareness in the US since it wasn’t as popular as Samsung or Motorola back then. This move gave HTC a 50.1% share in Beats.
Despite attaching the Beats brand to their smartphones HTC has not seen any significant sales boost from the partnership. In fact, its marketshare and share price has even dropped in recently. The company has even sold half of its Beats shares and now only holds a 25% share of the company.
The partnership between Beats and HTC has been rough and the former wants out. Rumors are spreading right now that Beats wants to buy out the remaining 25% share that HTC holds. The company is reportedly raising investments to cover the cost of the buyout. This rumored plan coincides with the company’s upcoming launch of the Beats music service. It looks like the company is diversifying its offerings by not only providing headphones but other related services as well.
As for the investor being courted by Beats it still remains a mystery. There might be some solid leads on this matter in the coming weeks.