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HTC sells back half of the shares it bought in Beats Audio

24 July 2012

HTC has sold back half of the shares it bought in Beats Audio. It had purchased last year 50% paying $300 million for them. Beats Audio the high spec headphones was founded in 2006 by rapper Dr.Dre and music producer Jimmy Lovine. Their first product appeared in 2009 made by Monster Cable, manufacturer of audio accessories, who also have exclusive 5 year contract.

HTC is left with around 25% of the company, selling the other 25% for $150 million. Its been troubling times at HTC, with falling sales and stock price, changes in management, plus it wasn’t making the financial hits it said it would for HTC. The premium headphones were sold with the HTC smartphones, but consumers were unwilling to pay extra for the privilege.

A statement issued by the company said, “to provide Beats with operational flexibility for global expansion”, adding that they will continue to work together on future projects with rights to use the Beats Audio headphones with their devices.

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