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Dr. Dre's Beats Electronics Can End Partnership with HTC

Aug 19 2013, 5:49am CDT | by , in News | Technology News

Dr. Dre’s Beats Electronics is looking for a way out. It wants to end its partnership with HTC once and for all. The bonding between the two didn’t work out and now a solution to the uneasy friendship is in the pipeline.

Dr Dre Beats Electronics Can End HTC Partnership
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Dr. Dre's Beats Electronics Can End Partnership with HTC

Dr Dre Beats Electronics Can End HTC Partnership
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Dr. Dre is on the lookout to buy back the 25% share that HTC has in his company, Beats Electronics. This has occurred a year after HTC slashed its shares by half. The breakup of the two giants will free both in their pursuits of what actually interests them. In the capacity of a popular headphone manufacturing company, Beats wants to be rid of the burden that HTC imposes via its share in the firm’s coffers. Beats also wants to bring in a newcomer that will invest in the company’s future thereby providing fresh avenues for growth. 

HTC had invested $300 million in Beats in 2012. Beats bought back half of that stake. Today it wants to buy the other half too. The fact of the matter is that the two have had radically different financial results. Beats has become hugely famous and grown with the times. HTC has meanwhile faced gloomy prospects that have led it down the long and dusty road of failure. It lies in the interest of Beats to let go of HTC if it wants to travel on the path of progress. Beats Electronics was founded by Dr. Dre and Jimmy Iovine and its president is Luke Wood. Its story has been one of wild success and a prosperous future lies ahead for this organization. 

Source: WSJ

 

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<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
Sumayah Aamir (Google+) has deep experience in analyzing the latest trends.

 

 

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