HTC halves its stake in Beats

A CHANGE OF HEART? A year after putting $300 million into Dr. Dre and Jimmy Iovine’s Beats Electronics, HTC says it has sold back half its stake for $150 million, but will still own 25% of the company. The Taiwanese smartphone maker will retain exclusive rights to use Beats audio technology with its phones. HTC says it expects to lose $4.9 million on its Beats investment, based on the headphone company’s current book value. A press release issued by HTC fails to explain the company’s motives for pulling back, spinning that “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.” The two companies are supposed to launch a “global marketing campaign” later this year, according to All Things D’s Peter Kafka. (7/25a)