HTC Sells Half of Its Shares In Beats Audio

Taiwanese smartphone maker HTC has announced that it has sold back 50 percent of its shares in headphone maker Beats Audio to the original founders of the US firm. The news came in a Taiwan Stock Exchange filing from HTC on Sunday. The new mix of ownership will give Beats a 75 percent share of the company while HTC will retain 25 percent ownership.

Analysts believe that the latest move by the maker of One X smartphone signals a change in HTC’s strategy for future products. The Taiwanese firm seems to be moving away from a hardware oriented strategy and might be looking at ways to compete against iPhone and Samsung by offering more content for their phones. HTC has seen a drop in its earning over the last three quarters as competitors like Apple and Samsung have eroded its market share. By selling back the shares, HTC will have some extra cash in its accounts as the selling price has been reported as 150 million dollars.

HTC had originally bought a 50 percent stake in Beats Audio for 300 million dollars last year. The smart phone manufacturer had hoped to improve the audio in its handsets and in turn hoped to attract buyers with the higher quality sound. HTC had offered its consumers the ability to purchase several models that came with the Beats Audio headphones. It has stated that the reduction in investment does not mean that the company will completely abandon its relationship with Beats and the technology will still come with some phones.

Beats Audio was founded by music artist Dr Dre and is focused on providing high-end audio headphones. The company is run by CEO Jimmy Iovine who is a well known music producer and businessman. The share buyback will probably give the management team of Beats the ability to guide their company along a course they choose without being tied down to a single phone manufacturer like HTC.