Beats increases its share ownership to 75%, lets HTC keep 'commercial exclusivity in mobile'
Although HTC and Beats are just shy of the one-year anniversary of their 300 million dollar partnership, it looks like the two are again growing apart. In a letter to shareholders today, it's been announced that the original owners of Beats plan to buy back 25 percent of its own shares, for a total ownership stake of 75 percent. That said, HTC will still retain nearly 25 percent of the remaining shares for itself, ensuring that it remains the largest external shareholder. As the release puts it, this new setup "provides Beats with more flexibility for global expansion while maintaining HTC's major stake and commercial exclusivity in mobile." All in all, it seems like this is more about shifting priorities given recent news like Beats' MOG acquisition, but it wouldn't make eventual breakup all the more unsurprising given the partnership's mixed results.
Show full PR text
HTC and Beats today announced a realignment of their business agreement that provides Beats with more flexibility for global expansion
1.Date of occurrence of the event:2012/07/21
2.Company name:HTC Corporation
3.Relationship to the Company (please enter "head office" or "affiliate company"):Head Office
4.Reciprocal shareholding ratios:N/A
5.Cause of occurrence:
HTC and Beats today announced a realignment of their business agreement that provides Beats with more flexibility for global expansion while maintaining HTC's major stake and commercial exclusivity in mobile.
Under the terms of the agreement, the founding members of Beats will buy back 25% of its total shares for a total of approximately 75% ownership, with HTC remaining the largest outside shareholder with approximately 25%.
Over the last year, HTC and Beats have made great progress in sound innovation, product integration and brand awareness with successes like the HTC One. HTC and Beats will continue to work closely, including a joint global marketing campaign later this year.
6.Countermeasures:N/A
7.Any other matters that need to be specified:N/A
