Beats Audio co-founders Dr. Dre and Jimmy Iovine are looking to continue the forward growth of their audio empire but they plan on doing that without their current partner HTC.
In 2011, Beats split ownership of the company after selling a 50.1 percent stake for $300 million to HTC. In less than a year the 50/50 partnership ended after Beats brought back half of HTC’s shares giving them 75 percent ownership. According to aWall Street Journal report, sources “familiar with the matter” cite that Beats now wants to purchase back the rest of HTC’s stake in the company as they seek a new investor to provide “fresh funds for growth.”
The separation between the two companies makes sense as both companies have grown at different rates since joining forces. HTC struggles to maintain market share in mobile market behind the Apple iPhone and Samsung Galaxy devices. On the other hand according to NPD Group, Beats Audio has obtained 59% of the U.S. premium headphone market. Last year Beats reported gaining “roughly $1 billion” in revenue. Over the months, numerous expansion rumors have emerged about the audio company. Last year Beats purchased streaming music service MOG last year and is currently rebranding the service for its forthcoming relaunch. In addition to MOG, the company is expected to launch car audio speakers and other consumer electronics.
At the present time, neither company has commented on the rumor of separation.
Written By Dru Ashe (@ShottaDru)
Source: WSJ
