Dr. Dre

HTC Sells Back Half Of Beats Electronics To Owners For $150 Million

(AllHipHop News) Telephone maker HTC has sold back half of their stake in Beats Electronics, the company co-owned by producer Dr. Dre and Jimmy Iovine.

According to the Chicago Tribune, HTC sold 25% of their shares back to Beats Electronics for $150 million.

HTC originally purchased a 50% stake in Beats Electronics for $309 million, in August 2011.

According to HTC, the sale “provides Beats with more flexibility for global expansion while maintaining HTC’s major stake and commercial exclusivity in mobile.”

Today (July 23), HTC’s shares fell almost 4% because of the news, with investors being concerned about HTC’s strategy for the future.

  • Big Ice Bastardman ✓ᵛᵉʳᶦᶠᶦᵉᵈ

    Hey remember Detox?

    • Tony G.

      why does he need to put out detox when folks are paying $250 headphones

  • ANDRE SALAZAR

    First, Dre doesn’t own “Beats”, Jimmy Iovine does & Dre is a minority owner who ran away with his share the minute HTC paid out! Also, Dre didn’t pay anything, HTC basically gave back the stock that made them partners with “Beats”, now they’re only into the company for 25%, which means “Beats” lost some substantial equity + makes them desperate for a new deal & also makes the entire deal look really bad considering it’s only been a few months since it closed. #FAIL

    • Still, Jimmy made 9Mil on the short.

  • Reggie Young

    Dre is not a minority owner of Beats. He’s the other partner in the company with Jimmy.

    • Landon Buford

      Minority owner, just like pdiddy with ciroc vodka its an endorsement for them using their face and name. you need to steep ur business knowledge up smh

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  • Imma be real for just a minute fam.

    I don’t post here often so you can say what you want but THIS is the kind of news AHH needs more of.

    Nevermind Jay-Z/Bey relationship problems, let’s talk about the BUSINESS side of hip hop because while we’re talking about tabloid trash there’s people making MONEY off this shit. The hip hop community needs to be a lil more educated on what goes on behind the scenes so they can start to make some moves for themselves.

    thats all

  • Knlegend1

    That’s a lot of money for a glorified equalizer on a phone. Hell I can find better ones in the play store. This isn’t fail it was fail when they made the deal. Beats are Trash anyways. Now where is Detox?

  • arthur higgins

    Can anybody tell me how do the headphones sound??Are they worth the$$$??Thats alot money for some headphones unless your a Dj or something like that!!Im curious as hell how they sound!

    • pockets_hot_from_pepperoni

      they aren’t worth the money i’ll tell you that. check them out for free in best buy. look @ senheiser headphones on amazon if you want your moneys worth

  • hoeyuno

    I’m no financial advisor but every ipod sporting teen and there dog where’s those headphones. Doesn’t sound like the best time to sell. But on the other hand big business means smart people… I never understood the $300 headphone craze I’m good with the 20 bone skullcandys.

  • hoeyuno

    @G… Unfortunately rick ross can’t get jacked everyday. Sometimes the ahh staff have to full there pages.

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  • tab58064

    The bottomline is that the brand is not doing as well as they had hoped. Soon we’ll see the price drop as the value of the brand declines.

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  • SelmanC

    its possible that this could be a good look. not sure about about stocks side but what it sounds like to me is that jimmy and dre getting ready to cut out the middle man.
    HTc invests all this money into “beats” they not just gone cash out without they ROI. it seems like jimmy slowly buying back his company and paying off the money he was “fronted”.
    stocks drop 4% but imo sure they are losing the machine and big financial backing but this is only helping them become more liquid and can acess more of they bread faster but w/o the red tape of the big business. just my 2 cents…