Bye Bye Beats: Phone giant sells its 25% share of Beats
HTC Europe has disposed of its 24.84% stake in audio guru Beats Electronics, it announced.
The deal was worth $265 million to the struggling Taiwanese phone maker.
26,100 Class B Beats shares were sold for US$10,153.25 each, in a deal worth $265m, bound to be a welcome cash injection for HTC.
The Taiwanese company recently announced among its worst ever results, including a 37% fall in revenue to US$524m in July and dismal profits and sales forecast as it battles against mobile powerhouses Apple and Samsung.
HTC anticipates profit from the deal (before tax) will be worth $85 million.
Beats will buy back the 25% stake via fundraising. HTC now has zero shareholding in Beats after the divestment.
HTC features Beats Audio technology in its smartphones, including current hero’s One and One mini.
However, it is not yet clear if its smartphones will carry Beats Audio in the future.
Company shares rose slightly to 132.00 – up 1.54% on Taiwanese stock market, after the announcement.