Printed from http://www.electronista.com

Beats buyback came when HTC didn't meet obligations

updated 07:33 pm EDT, Mon July 23, 2012

HTC's own upheaval caused phone maker to miss commitments

Following yesterday's news of Beats Audio buying back shares from HTC, sources today claim that the buyback occurred due to HTC not fulfilling certain of its contractual obligations. Persons familiar with the matter tell CNet that HTC's own troubles kept the company from meeting its financial commitments to Beats, leading Beats to buy back half of the shares it had sold to the Taiwanese phone maker.

Last August, Beats sold 50.1 percent of its shares to HTC in a deal that apparently included some degree of financial support or payment from the HTC. The $300 million purchase gave HTC a controlling share in the audio accessory maker, as well as exclusive access to Beats technology for the mobile market.

Over the past year, though, HTC has undergone a management shakeup. The company has also seen its market share shrinking in the face of competition from larger players, and its shares have suffered consequently.

Following the new buyback, Beats will hold 75 percent of its own shares, and HTC will hold 25 percent. Beats representatives have said that the deal will provide the company with operational flexibility for global expansion. According to some analyses, Beats holds 28.7 percent of the overall headphone category, with 54 percent of market share among headphones costing $100 or more.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

D-Link Wi-Fi Smart Plug

Home automation fans have been getting their fair share of gadgets and accessories in the last few years. Starting with light bulbs, a ...

Razer Kraken Pro headset

Gaming headphones are a challenge to get right, for a long list of reasons that are unique to the consumer buying them. Some shoppers ...

Patriot Aero Wireless Mobile Drive

Regardless of how large a tablet you buy, you always want more space. There's always one more movie or another album you'd cram on, if ...

Sponsor

toggle

Most Commented

 
toggle

Popular News