WorldWide Tech & Science. Francisco De Jesùs.
HTC reducing its ownership of Beats to 25 percent.
Troubled smartphone maker HTC announced a “realignment” of its business relationship with audio technology company Beats Electronics, which will see it reducing its ownership of Beats to 25 percent from 50 percent – and ceding its controlling 51 percent voting right.
The deal is said to provide Beats with “more flexibility for global expansion”, with HTC maintaining its “major stake” in the company, as well as having “commercial exclusivity in mobile”.
In a statement, the Taiwanese device maker said that “over the last year, HTC and Beats have made great progress in sound innovation, product integration and brand awareness with successes like theHTC One. HTC and Beats will continue to work closely, including a joint global marketing campaign later this year”.
HTC is selling its holdings to Beats’ founder members, for USD150 million. After the sale, it will have a 25.14 percent economic stake, and 25.57 voting rights.
The company is anticipating recording a loss of US$4.9 million, based on its assessment of Beats’ value in its latest financial reports.
HTC announced its investment in Beats Electronics last year. Since then, it has released a range of devices which include Beats audio features, from its Sensation XE line to its current flagship One portfolio.
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