One of HTC’s biggest selling points for its new line of HTC One handsets are the dual frontal stereo speakers with an “authentic sound experience from built-in Beats Audio.” However, Beats Electronics LLC is looking to part ways with it “Asian partner and bring in a new investor that can provide it with fresh funds for growth,” according to Wall Street Journal.
People familiar with the matter claim the founders of Beats Audio, Jimmy Lovine and Dr. Dre, are looking to buy out HTC’s 25% stake in their company. The headphone maker already bought back half of HTC’s 50.1% stake last year, and purportedly aims to buy the rest of HTC’s remaining interest in an effort to separate itself from the struggling smartphone and tablet maker.
Beats has had great success with its high-end headphones since it launched it first pair in 2008. The company reportedly earned around $1 billion in revenue last year, and holds 59% of the premium audio market, according to NPD Group.
HTC has struggled with dwindling profits, but hopes to regain its status in Q4 of this year.
It is unknown what will happen to HTC’s and Beats’ branding partnership if the buy out does take place.