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BEATS VS. HTC

The partnership between HTC and Beats has never been that smooth as it was expected to be. HTC had initially in the year 2011 purchased a 50.1% stake in the company for $300 million some two years back, whereby they had got the fundamental rights for using the Beats Audio technology in their mobile devices. However it had sold back 25% to the company owners for about $150 million as it is rumoured to be. However no authenticity has been proclaimed. It is a known fact that Beats Audio had promoted the HTC Smartphones audio quality with a boom sound promising to give the best quality product. They had the exclusive right to use the phone audio from Beats and it is known that they have used it in almost every single high end HTC device. However it was quite diminutive for Beats and they would have made better profit if they could partner with Apple or Samsung.

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However, it is since then that their relationship has been jagged. Their internal struggle and HTC’s incapability to fund the Beats Electronics into the other audio areas has made them take a decision to part ways.

A year before Beats had bought half of the HTC shares and now it is said that Beats is paying an additional $265 million to get hold of the remaining ownership. HTC claims that there will be an anticipated profit from the disposal tax which will be approximately NTD2.520.036.000 which is roughly around $85 million USD.

It is thus to be considered what kind of relation will the two companies share, especially now when Beat Audio has moved apart from the channelized HTC. It is obvious that it has come about as a loss for HTC and they are just trying sufficiently hard to sustain, but we doubt and it is a question of great thought whether they will seek for a license agreement at all with Beats to retain the exclusive rights to their mobile audio tech. We wonder how HTC will take this movement to buy a stake and will they continue to be on friendly terms provided knowing the fact that Beats Electronics has taken away a part of their ownership.

As long as Beats Electronics is considered, it is a sure fact that with a fresh fund in the bank, the company will be able to successfully push their brand in the different markets.

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