HTC has announced that there have sold 25 percents of their Beats shares back to Beats today. Last year HTC bought a 50 percent stake in the company for 300 million dollar . HTC is currently facing stiff competition in the smartphone space and there is no indication that this partnership has improve matters. It’s likely HTC is trying to focus it’s resources wisely going forward.
The press release states:
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.
7.Any other matters that need to be specified:N/A
Image Credit: grabi.org