By Alexandra Burlacu | Aug 19, 2013 07:20 AM EDT
Beats by Dre is apparently looking to ditch HTC and seek to secure a more beneficial partnership with another investor.
While HTC extensively touted this partnership and Beats has made HTC smartphones more desirable for some users, the mobile audio firm is reportedly trying to buy out HTC and end a fruitless collaboration.
According to the Wall Street Journal (WSJ), Beats founders Jimmy Iovine and Dr. Dre are looking for a new partnership that can help it expand in the consumer electronics market.
"The maker of the popular Beats by Dr. Dre headphones is looking to buy out its Asian partner and bring in a new investor that can provide it with fresh funds for growth, people familiar with the matter said," the WSJ reported on Monday, Aug. 19.
According to the publication, Beats by Dr. Dre aims to expand its reach further into the speaker market. The company is reportedly interested in launching its own music streaming service as well.
Back in April 2011, HTC grabbed a major 50.1 percent stake in Beats Audio in a deal worth roughly $300 million. Following this move, HTC started including the audio technology into its smartphones and the handsets boasted a Beats Audio logo on their backs.
HTC even bundled Beats by Dr. Dre headphones with its smartphones when it first entered this partnership, but that promotional deal did not last very long. Last July, HTC sold back half its shares and it now holds just a 25 percent stake in Beats by Dr. Dre, which the audio company is now trying to buy out.
"The fledging audio-products company is now in talks with an investor that could provide debt financing and possibly take a minority ownership stake in the coming weeks, the people familiar with the matter said. Beats also hopes to buy out struggling Taiwanese smartphone maker HTC Corp's 25% stake in the company," adds the WSJ report.
Beats officials have not disclosed any details regarding the upcoming investment nor did they reveal the identity of the potential investor. HTC declined to comment on whether the company will agree to sell its stake in Beats.
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