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Beats and HTC to Part Ways

By - Source: Bloomberg | B 19 comments

HTC is getting out of the Beats brand

The rumors were true. Beats and HTC are breaking up. Last month there were rumors that Beats wanted to buy back HTC's stake in the audio company and find another investor. Bloomberg today reports that HTC is selling its remaining 24.84 percent stake in Beats Electronics for $265 million. 

The deal will apparently net HTC $85 million in pretax profits when it closes in the fourth quarter of this year.

Back in August of 2011, HTC poured $300 million into a deal with Beats Electronics, manufacturer of the hugely popular 'Beats by Dre' audio equipment. Just one year later, in July of 2012, HTC sold half of its 50 percent stake back to Beats. In mid-August, there was talk that Beats was looking to buy out HTC's remaining stake in favor of a new investor that's willing to put up the funds for growth.

The deal will offer HTC, which is facing tough times, a nice injection of cash and frees Beats up to seek another investor. Who will that be? Well, Bloomberg writes that Carlyle Group is coming on board, though it's only with a minority investment. That deal is expected to close in the fourth quarter, though financial details of the agreement were not disclosed.

Beats was launched in 2009 as part of an effort to improve the quality of audio products being sold today. Iovine, also the CEO of Interscope Geffen A&M Records, said in 2009 that the record industry had allowed music to be degraded and that Beats hoped to change that. "It's one thing to let it get stolen," he told CNet. "It's another to allow it to be degraded because then you really don't have a chance...video games and TV quality are getting better and the quality of our work is getting lower. If that happens, then music will become disposable."

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Top Comments
  • 18 Hide
    Kitlope , September 27, 2013 1:08 PM
    too bad the public is getting fooled into believing these are "good" headphones.
  • 12 Hide
    Kitlope , September 27, 2013 1:06 PM
    Too bad they have spiked the bass to make it sound "badass". Not an accurate headphone at all and the price is much too high.
Other Comments
  • 12 Hide
    Kitlope , September 27, 2013 1:06 PM
    Too bad they have spiked the bass to make it sound "badass". Not an accurate headphone at all and the price is much too high.
  • 18 Hide
    Kitlope , September 27, 2013 1:08 PM
    too bad the public is getting fooled into believing these are "good" headphones.
  • -1 Hide
    Kitlope , September 27, 2013 1:13 PM
    too bad the public is getting fooled into believing these are "good" headphones.
  • 9 Hide
    michael908 , September 27, 2013 1:45 PM
    These are the most over rated headphones that ever existed. I'd rather have a pair of bose headphones than these.
  • 7 Hide
    Vorador2 , September 27, 2013 2:34 PM
    My HTC One X came with free Beats earbuds. It said in the package they cost over 100$.

    After trying them, i send them back to the box and kept my "cheapo" Sennheiser CX-300 II.

    I say good riddance.
  • 1 Hide
    edogawa , September 27, 2013 9:27 PM
    Good god, I hate beats, I always see black people wearing them too. Over rated garbage with tons of bass.
  • 6 Hide
    shin0bi272 , September 27, 2013 9:53 PM
    I have 24 dollar sennheiser headphones that sound better and saved me 475 dollars. Beats headphones just suck I wouldnt even take a free pair they suck that bad. I hope they go under. Not like Dr. Dre needs more money or anything.
  • -3 Hide
    m32 , September 27, 2013 11:16 PM
    Quote:
    Good god, I hate beats, I always see black people wearing them too. Over rated garbage with tons of bass.


    No sound quality or price info on why you hate them? This quote makes you seem like you hate the headphones because of "black people". Choose your wording a little better on the internet. It could make you seem one way when your not.
  • 2 Hide
    edogawa , September 27, 2013 11:36 PM
    Quote:
    Quote:
    Good god, I hate beats, I always see black people wearing them too. Over rated garbage with tons of bass.


    No sound quality or price info on why you hate them? This quote makes you seem like you hate the headphones because of "black people". Choose your wording a little better on the internet. It could make you seem one way when your not.


    Black people are the majority wearing them from my every day observations, I've seen at least 20 black people waring them in the last month alone.

    If you thought that was racist, what I said, it's only racist because you made it out to be racist.

    This is a comments section, not an article reviewing beat headphones, anyone who uses audiophile headphones should already know beats are garbage trendy fashion products.

    I use Audio-Technica, Sennheiser, and Grado headphones, not hyped up inaccurate bass heavy flimsy garbage.
  • -1 Hide
    mcgee101 , September 27, 2013 11:38 PM
    Would rather purchase a bose headset or speaker system instead. I heard one of the $250 headphone system and yeah I think it is a overpriced sony headset.
  • 0 Hide
    phalanxes , September 27, 2013 11:59 PM
    No, Iovine...
    Music degraded because you embraced mp3 compression
    Heck.. Even old vinyl record is still better than most of the cds nowadays
  • -2 Hide
    m32 , September 28, 2013 12:35 AM
    Quote:
    Black people are the majority wearing them from my every day observations, I've seen at least 20 black people wearing them in the last month alone.

    If you thought that was racist what I said, it's only racist because you made it out to be racist.

    This is a comments section, not an article reviewing beat headphones, anyone who uses audiophile headphones should already know beats are garbage trendy fashion products.

    I use Audio-Technica, Sennheisers, Grados, headphones, and not hyped up inaccurate bass heavy flimsy garbage.


    Sorry about that bro. I wasn't trying to imply you were racist. If someone used,"Good god, I hate BMW, I always see white people driving them too." It isn't racist to me but kinda unnecessary to discredit something. Again, sorry about that if I offended you. I didn't intend to.

    I agree Beats do seem to target black males. My friends hold them to the highest standard when talking about audio quality. I've mentioned a couple of brands you used to them (Sennheisers is the brand I'm rocking right now) for a better sound experience and price. They will learn to hear their music one day. They do love bass though... lol
  • -1 Hide
    edogawa , September 28, 2013 2:03 AM
    Quote:
    Quote:
    Black people are the majority wearing them from my every day observations, I've seen at least 20 black people wearing them in the last month alone.

    If you thought that was racist what I said, it's only racist because you made it out to be racist.

    This is a comments section, not an article reviewing beat headphones, anyone who uses audiophile headphones should already know beats are garbage trendy fashion products.

    I use Audio-Technica, Sennheisers, Grados, headphones, and not hyped up inaccurate bass heavy flimsy garbage.


    Sorry about that bro. I wasn't trying to imply you were racist. If someone used,"Good god, I hate BMW, I always see white people driving them too." It isn't racist to me but kinda unnecessary to discredit something. Again, sorry about that if I offended you. I didn't intend to.

    I agree Beats do seem to target black males. My friends hold them to the highest standard when talking about audio quality. I've mentioned a couple of brands you used to them (Sennheisers is the brand I'm rocking right now) for a better sound experience and price. They will learn to hear their music one day. They do love bass though... lol


    Not offended at all, but people are too sensitive and childish these days about that racial stuff.

    Anyways. A good chunk of blacks tend to like the bass, just a cultural thing because they like that type of music, and they are advertised by that Dre guy, I find the whole thing stupid. I like bass in my audio, but when I tried those beat headphones I was like "holy crap, that's to much" and I couldn't hear any details in music very clear at all. The beat headphones also feel incredibly cheap, like 15$ headphones, tacky. I wouldn't have a problem if they sold for like 40 bucks, but 200, 300, hell no! For 300 I'd rather buy a Sennheiser HD 598 or similar.


  • 2 Hide
    amk-aka-Phantom , September 28, 2013 10:53 AM
    Good riddance, HTC. I was in an audiophile store a few months ago. Tried everything from $50 to $2000 - Bose, Sennheiser, AKG, Audio-technica, Beyerdynamic (loved the Custom One Pro but couldn't afford it, sadly)... they didn't have Bang & Olufsen xD Anyway, I did try the Beats for the first time - I knew they were overhyped, but I didn't know that it was THAT bad. Uncomfortable (press ON your ears, while all good headphones go AROUND ears), lame sound quality, stupid design... oh, and did someone say they have a lot of bass? Not they don't. Razer Kraken which I bought after all (inb4 audiophiles bashing Razer: for me they were the best value for money over all other headphones in that price range, so I'm happy - they're extremely comfortable and sound great, just wish I bought the Pro version with its awesome mic), THAT has bass. Beats got nothing.

    Funniest thing was when I asked the salesman "Do you have ANY *bad* headphones around here?!" right after being trying some awesome $1000 headphones.

    His answer?

    "Yeah, we do, Beats."
  • 0 Hide
    pocketdrummer , September 28, 2013 3:22 PM
    Beats is crap anyway. HTC is better off without them.

    Speaking of which, the Sol Republic Jax headphones are crap too. Why do people think boosting the hell out of the lows and highs makes music sound good?

    Give me a set of headphones with controlled bass, defined mids, and crisp highs any day. Beats and Sol Republic belong in the trash can.
  • 0 Hide
    Draven35 , September 30, 2013 3:18 AM
    Want good headphones? Audio Technica, Sennhaiser, etc... may not 'sound good' but are far more likely to be *accurate*
  • 0 Hide
    edogawa , September 30, 2013 8:26 AM
    Quote:
    Want good headphones? Audio Technica, Sennhaiser, etc... may not 'sound good' but are far more likely to be *accurate*


    Pretty much. What may sound "good' is subjective to the individual.
  • 0 Hide
    sonofliberty08 , September 30, 2013 6:20 PM
    Apple should buy beats, they both made crap, and they was the king of hype
  • 0 Hide
    Draven35 , October 2, 2013 11:09 AM
    Quote:
    Apple should buy beats, they both made crap, and they was the king of hype


    and then merge with monster cable.