Beats by Dr Dre looking at dropping HTC

19 Aug 2013

Headphones maker Beats by Dr Dre is looking to buy out HTC and bring in a different investment partner, according to reports.

HTC has a 25pc stake in Beats, according to the Wall Street Journal.

Beats is planning to expand beyond headphones into in-car audio and streaming as well as a new online streaming music service.

Future Human

The company recorded revenues in the region of US$1bn last year, up from US$200m in 2010.

Beats is understood to be in talks with an investor to provide debt financing and take a minority ownership stake in the company.

This isn’t the first time that the headphones company had tried to buy struggling HTC out. Last year it unsuccessfully tried to raise US$700m from the credit markets to buy out HTC’s stake.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years