Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

HTC to sell back stake in Beats  Join our daily free Newsletter

MENAFN - Khaleej Times - 28/09/2013
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) HTC Corp, the Taiwanese smartphone vendor whose stock has plunged 90 per cent since 2011, is selling its remaining stake in headphone maker Beats Electronics LLC for 265 million.
HTC will close the sale of its 24.84 per cent stake in the closely held company in the fourth quarter, and it expects a NT2.52 billion (85 million) pretax profit, according to a statement to Taiwan's stock exchange. Beats, founded by music producer Jimmy Iovine and rapper Dr Dre, also will repay a 150 million promissory note, plus accrued interest.

The deal comes two years after HTC took a 51 per cent stake in Beats for 300 million and started using the Santa Monica, California-based company's sound technology. HTC since has struggled to compete with devices from Samsung Electronics Co and Apple, with its market share falling to less than 3 per cent of the 280 billion smartphone industry.

"For HTC it puts more cash in the bank, and they need cash now that they have turned operating cash flow negative," said Jean-Louis Lafayeedney, an analyst at JI Asia in Hong Kong. "Investors have been asking HTC to shed assets and get cash back to help them regain profitability."

Separately, Beats said Carlyle Group LP will make a minority investment, with the deal expected to close in the fourth quarter. The terms were not disclosed.

Beats' technology has been used in Hewlett-Packard Co. computers and Chrysler Group LLC cars. The headphone maker last year purchased the MOG music-streaming service to add high-quality soundtracks and playlists to its devices.

HTC, the first maker of phones using software from Google, was a contract manufacturer before it began promoting its own brand in 2006. The company had a short-lived reign at the top of the US market in the third quarter of 2011, when it accounted for 24 per cent of smartphone shipments, according to researcher Canalys.

HTC's share of the global smartphone market fell to 2.8 per cent in the second quarter, from 5.8 per cent a year earlier, according to data compiled by Bloomberg. The company enlisted actor Robert Downey Jr. to promote its smartphone brand in a two-year global marketing deal worth about 12 million, two people with knowledge of the plans said in June.

The company in February 2012 said it had "dropped the ball" on products, pointing to weaknesses in design and engineering. The HTC One, which was supposed to herald a reversal of fortune, has so far failed to stop a slide in the company's sales since the phone's introduction was delayed to the same timeframe as Samsung's flagship Galaxy S4.

 


Khaleej Times




  MENA News Headlines
 Nov 29 2014 - Qatar's Airport City's project awards possible in 2 yearsMENAFN
(MENAFN) Official said that tenders to award contracts for the construction of Qatar's ambitious Airport City project will not be possible before the 2016-end, The Peninsula Qatar reported.Chairman ...

 Nov 29 2014 - Emirates to fly A380 to 3 European, US routesMENAFN
(MENAFN) Emirates Airlines announced that it is placing the Airbus A380 onto three of its routes into the US and Europe as of next week, Gulf News reported.Emirates' existing daily Dubai to San ...

 Nov 29 2014 - Abu Dhabi Airport handles 1.68m passengers in OctoberMENAFN
(MENAFN) The number of passengers travelling through Abu Dhabi International Airport increased 17.4 percent to 1.68 million in October over a year earlier, Gulf News reported.The latest data released ...

 Nov 29 2014 - Lebanese 'giant of poetry' Said Aql dead at 102The Peninsula
(MENAFN - The Peninsula) Lebanese poet Said Aql, whose work was loved by Arab readers but who hated Arabism so much that he invented a latinised version of the Lebanese dialect, died yesterday aged ...

 Nov 29 2014 - Qatar- FIA Prize-giving ceremony to be held in new formatThe Peninsula
(MENAFN - The Peninsula) The prestigious annual FIA Prize-giving ceremony, which honours the achievements of all FIA champions over the past season, will be held here on December 5. This year's ...

 Nov 29 2014 - US- Eagles, Seahawks, Lions dominate on ThanksgivingThe Peninsula
(MENAFN - The Peninsula) Mark Sanchez threw for one touchdown and ran for another and the Philadelphia Eagles seized sole possession of first place with a 33-10 rout of the Dallas Cowboys on ...

 Nov 29 2014 - Tunisia- Anti-Israel protestThe Peninsula
(MENAFN - The Peninsula) Tunisian protesters burn Israeli flag during a rally to show their solidarity with Palestinians, in Tunis, yesterday. ...

 Nov 29 2014 - Bahrian- Show of solidarityThe Peninsula
(MENAFN - The Peninsula) Leading Shia clergyman Seyyed Mohammed AlGuraifi addressing crowds at an event expressing solidarity with Ayatollah Sheikh Isa Qassim (not pictured), Bahrain's top Shia ...

 Nov 29 2014 - Egypt crackdown adds to Gaza woesThe Peninsula
(MENAFN - The Peninsula) Already struggling under the weight of an Israeli blockade, Gazans are now feeling the effects of an Egyptian exclusion zone along their shared border that has sent prices ...

 Nov 29 2014 - Qatar- School celebrates Annual DayThe Peninsula
(MENAFN - The Peninsula) K C Abdul Latheef (left), President, Managing Committee, Shantiniketan Indian School, presents a memento to Dr Abdul Salam Ahmed, Managing Director, Media One, in the ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help