In The Taiwanese smartphone maker, HTC, has announced that it will be investing $300 million in Beats Electronics, which is a USA based headset maker founded by record executive Jimmy Iovine and rapper Dr. Dre. The company sells gear under the Beats by Dr. Dre brand.
According to the terms of the deal, the two companies will join hands to release a line of HTC devices that will be incorporated with Beats sound technology. The new devices could arrive as early as this fall. After the deal, HTCs stake in Beats Electronics will be of 51%.
HTC CEO Peter Chau has said that the deal with Beats Electronics was important, as it would enable HTC to offer unique sound experience to HTC smartphone and tablet users. Only last month HTC had announced the purchase of S3 Graphics Co. to access its trove of patents as it defends its turf against infringement lawsuits from Apple Inc.
As of June 30, HTC had amassed a cash pile of $3.7 billion. Soaring demand for smartphones with touchscreens and faster fourth- generation connectivity is helping the company generate large amounts of cash and profits. It is now close to Nokias No. 3 position in the global smartphone market.
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