It's so hard to say goodbye, they say. But for Beats, the goodbye couldn't be quicker when it comes to their old friend, HTC.
Beats (the same guys who brought you Beats by Dre), is looking to get out of their partnership with HTC, with their sights set on greener pastures. Beats has exploded in popularity in recent years—thanks to its flagship headphones—becoming so big that its taken up 59-percent of the American premium headphone market, which helped earn them a billion in revenue in 2012.
So, what do you want when you get bigger? You want better. HTC has hit some unspectacular marks recently, with several low quarters in a row, leading to a 83-percent decline in profit from last year.
Sadly, it was only in 2011 that HTC bought a 51-percent share in Beats for $309 million, but then sold half of that back in 2012 when they needed money, leaving them with only a 25-percent stake. Now, Beats wants to buy that remaining sum out and bring in a new investor that will help them grow even bigger. Beats founders Dr. Dre and Jimmy Iovine (who own about 75-percent of the company) have already begun steering Beats into broader territory, like audio systems in cars and other electronics, and a new online streaming service which will be launching soon.
That means the next time you see a new model of the HTC One, it might not have that nice Beats Boom Sound to it—that will likely be no more if the companies part ways. It might be hard to say goodbye, but something tells us Beats will be doin' just fine.