WorldWide Tech and Science. Francisco De Jesus.
HTC announced a “strategic partnership and investment” in audio technology company Beats Electronics, stating that “the two fast-growing brands will focus on bringing high performance sound to HTC phones.” While the official announcement was short on details, HTC’s investor website confirmed the acquisition of a 51 percent stake of the company via its HTC America arm. Numerous reports put a price tag of US$300 million on the deal.
Beats Electronics is best known for its Beats by Dr Dre brand. HTC said the partnership will see “a line of HTC devices integrated with Beats sound innovations, available this fall [autumn].”
In an interview with All Things D, Peter Chou, CEO of HTC, said that the deal should “help create an emotional connection to HTC’s brand.” HTC is not the first technology company to work with Beats Electronics: a deal is also in place with HP for its notebook computers, which HTC said will remain in place after its investment.
HTC has made several acquisitions in recent months, bolstering both its technology capabilities (and its patent portfolio) and extending its presence beyond devices.
Last week it acquired US-based mobile internet applications company Dashwire for US$18.5 million, and earlier this year it acquired UK-based content delivery company Saffron Media Group for 30 million brittish pounds. It has also invested US$10 million investment in Chinese digital music service provider KKBOX, and US$40 million in cloud gaming company OnLive.
Beats Electronics was founded in 2006, and was described as “the brainchild of legendary artist and producer Dr Dre” and Jimmy Iovine, chairman of Interscope Geffen A&M Records. The company set out to develop “a new type of headphone with the capability to reproduce the full spectrum of sound that musical artists and producers hear in professional recording studios.” It will continue to operate autonomously.
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