The producer of the Beats by Dr. Dre headphone line
could be forcing out HTC as an investor and replacing it with another in the future, according to a report. Beats Electronics is said to be looking to buy back the remaining 25-percent ownership stake controlled by HTC, a move similar to one performed by the company last year
after allegations of HTC failing to meet certain contractual obligations
HTC acquired a 50.1-percent stake in the company in August 2011 for $300 million, giving HTC a controlling share in the manufacturer. It is not clear why exactly Beats is considering buying the remainder back, according to the Wall Street Journal
, but it is believed that the company is trying to broaden its business into a number of new areas, such as streaming music
, with a new investor providing debt financing.
An attempt by Beats to remove HTC from the equation comes at a time when the phone manufacturer is launching a new global marketing campaign
, in order to improve its brand recognition and its finances, with the potential loss of Beats harming HTC's carefully-laid plans.