The 300 million dollar partnership between the Taiwan based company and Beats is reportedly cracking up and the two are growing apart. Even though Beats and HTC will soon mark their first anniversary of partnership, it looks like the partnership between the two is cracking up. The reason why the two seem not to be getting together is that in a letter written to shareholders, it was announced that Beats’ original owners intend to buy back 25 percent of their own shares, for a total ownership stake of 75%.
With that, HTC will still hold almost 25 percent of the other shares, which will help it stay as the biggest external shareholder in the partnership. Beats is a name associated with HTC now or perhaps, others would like to think it is the other way round. The Dr. Dre Beats headphones are seen everywhere globally, with the masses buying it for music purposes but others as a fashion accessory.
On the other hand, HTC has received recognition for its incorporation of Beats in its handsets. However, it goes by without saying that HTC is a popular mobile company while Beats itself is popular in its own category and as a separate entity. With the new change in share ownership, the new setup will render Beats greater flexibility for worldwide expansion while at the same time it will be able to maintain the major stake at HTC and gain commercial exclusivity in mobile.
Things don’t seem to be going in the right direction and priorities seem to be shifting now. In other news, we heard about Beats’ MOG acquisition too. If in the future Beats and HTC do agree to part ways, it won’t come as a surprise as the sequence of events occurring these days point towards the possibility of an actual breakup between the two.