In an announcement today, HTC revealed that the company has agreed to sell the rest of the stake it had in Beats, and this marks the end of the partnership which started off back in 2011 between the two companies.
Beats and HTC has been maintaining a long standing partnership, and HTC has been producing phones which had really good audio quality with the help of Beats. But today, Beats made the announcement that the company is ending its partnership with the struggling HTC, but would still continue to work with them.
HTC has been under a lot of pressure for failing to perform well in the mobile phone industry. And the company’s profits have been constantly going down every quarter. Considering this constantly falling profit for HTC, Beats is taking back $265 million in share from HTC.
Beats was growing up with HTC since 2011, when the company bought $300 million share from Beats. But later, Beats paid HTC $150 million to buy back half of the investment that HTC made to get some hold on itself. So starting with the upcoming releases from HTC, the company might not be having the Beats logo embedded in the devices.
On the other hand, Beats Electronics has been gaining constant momentum in the past. The company is also expected to launch its own music-streaming service like Rdio and Spotify anytime this year.