In 2012, HTC paid $300 million to acquire a majority stake in Beats Audio, a software and hardware audio manufacturer. Today the company is announcing that it has decided to go in a different direction. In an investor announcement, HTC made it known that they have sold 25 percent of Beats shares back to the audio company for $150 million. Both sides are calling the strategy a “business realignment”.
The purchase will give Beats Audio more independence and flexibility for further expansion. Previously, HTC held the decision-making power which left the Beats brand virtually incapable. Despite the change in strategy, both companies have decided to continue the HTC smartphone exclusivity. Although, without bundling Beats headphones, there is really no advantage other than a fancy software-encoded equalizer.