Thursday, August 11, 2011

HTC Buys 51% Stake in Dr. Dre’s beats electronics for $300 million


    HTC Corp. (2498), Asia’s second-largest handset producer by market value, agreed to buy control of a maker of headphones backed by rapper Dr. Dre for $300 million
   
    .The Taiwanese company will acquire 51 percent of Beats Electronics LLC, HTC Chief Financial Officer Winston Yung said today.
    U.S.-based Beats Electronics, formed in 2006 by Dr. Dre, also known as Andre Young, and Universal Music’s Interscope Records Chairman Jimmy Iovine, makes headphones that sell for as much as $600.

      The purchase paves the way for the Taiwanese smartphone maker to expand its offering of accessories as competition in the smartphone market escalates. HTC last month agreed to buy S3 Graphics Co. for $300 million to access its trove of patents as it defends against infringement lawsuits from Apple Inc. (AAPL)
       As part of the strategic patnership and investment, HTC plans to incorporate Beats technology into their phones by the end of the year. Dr. Dre and Iovine will continue to operate Beats autonomously.

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