HTC Acquires 51% of Dre's Beats Electronics For $300 Million
Super producer Dr. Dre and his company Beats Electronics will sell a 51% stake of the company to Taiwanese telephone maker HTC for $300 million dollars.
Beats Electronics is a venture between Dr. Dre, Jimmy Iovine and Interscope Records.
The company specializes in making high end headphones, which are customized for a variety of pop stars, who sell them to their fan base.
In addition to the Beats by Dre line, Beats Electronics has made headphones for artists such as Lady Gaga, Justin Bieber and others.
According to the Wall Street Journal, the company was acquired to improve the sound quality on phones, music, video games and movies for HTC.
“This will give us opportunity to innovate,” HTC Chief Executive Officer Peter Chou said.
Dr. Dre and Jimmy Iovine will continue to run Beats Electronics.
“When Jimmy and Dre started this, they had a very specific vision of what Beats would be,” said Beats Electronics president Luke Williams. “It wasn't about headphones, it was about fixing the degradation of sound.”