Beats pulls the 3.5mm plug on HTC partnership with $265 million repurchase of sharesAlex Wagner - Deputy Managing Editor, News Desk
Beats Electronics and HTC have officially pushed the "Stop" button on their relationship. HTC announced this morning that it has sold its remaining 24.84 percent stake in Beats Electronics for a total of $265 million, which is $115 million more than HTC got for the other half of its Beats stock a little over a year ago. Sources speaking to the Wall Street Journal say that the relationship between Beats and HTC had gone south as of late, with the two companies reportedly disagreeing on decisions related to strategy and investments.
HTC originally invested $300 million into Beats in November 2011, and with today's sale, the Taiwanese firm has ended up receiving around $415 million. While it may no longer have a stake in Beats, HTC can't be terribly disappointed about ending its relationship with Beats with an additional $115 million on its initial investment, especially considering how bumpy things have been for it lately. Not only did a U.S. ITC judge recently rule that HTC infringed upon some Nokia-held patents, but the company is also reportedly experiencing supply issues with its One mini and may end up posting a loss as part of its Q3 2013 results.