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Beats Buys Back its $265 Million Shares from HTC

Sep 27 2013, 9:58am CDT | by , in News | Technology News

Beats Buys Back its $265 Million Shares from HTC

Beats Electronics has decided to buy back its shares from HTC to end the 2 years partnership between both companies. Worth $265 million, the stakes form 24.84% of the headphone maker’s total assets.

There was talk regarding a buying back of shares. Then it turned out to be true. HTC let it be known that Beats Electronics will re-purchase 24.84% of the stocks it had invested thereby ending a two year pact that had proved to be a failure. HTC had bought more than half the share of Beats for $300 million two years ago. Beats Electronics meanwhile is just starting on its journey of success. 

Headphones, speakers, car audio systems and an online music setup are just some of the tangible achievements accomplished by Beats. Its founders, Iovine and Dr Dre are managing the company in an exemplary manner. They even have a new investor in the cards. Meanwhile, HTC has lost over 90% of its fame and glory over the past few years. 

HTC is keeping up appearances. It says it will continue to cooperate with Beats. In a way it is ironic. Nobody expected Beats to be so successful and nobody thought HTC would be a loser. But the tables have turned as the times have shown. 

With some cold hard cash in hand, it remains to be seen how HTC goes about restructuring and revamping its image. The market for smart phones which it wants to enter is a dog-eat-dog world of extremely cutthroat competition. It will have to find a way to survive there.

Source: HTC , Nasdaq 

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