Quotes: US 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
 Oct 30 2014 - UAE- Hawaii lava flow reaches home threatens townKhaleej Times
(MENAFN - Khaleej Times) Red-hot lava from a slow-erupting volcano has reached a home on Hawaiis Big Island and is threatening an entire town emergency officials said Tuesday. The lava flow from ...

 Oct 30 2014 - UAE- Slow-moving lava creeps closer to Hawaii homesKhaleej Times
(MENAFN - Khaleej Times) A branch of the molten stream was less than 100 yards (90 meters) from a two-story house.This photo provided by the US Geological Survey shows the lava flow from Kilauea ...

 Oct 30 2014 - UAE- Mudslide buries Sri Lanka tea labor quartersKhaleej Times
(MENAFN - Khaleej Times) The military has mobilized troops to help in the rescue operations. Colombo Sri Lanka: A mudslide in central Sri Lanka has buried several rows of workers’ houses at a ...

 Oct 30 2014 - UAE- 10 people killed 200 missing in Sri Lanka after mudslidesKhaleej Times
(MENAFN - Khaleej Times) A local hospital source said that two men and a woman rescued from the mud had been brought in for treatment. Colombo: Around 200 people were reported missing and 10 ...

 Oct 30 2014 - UAE- Heavy rains continue in Telangana two deadKhaleej Times
(MENAFN - Khaleej Times) Two women both sisters were washed in the swirling waters of a rivulet near Madgula village in Guntur district of Andhra Pradesh as heavy rains caused by Cyclone Nilofar ...

 Oct 30 2014 - UAE- Magnitude 6.1 earthquake hits near Samoa: USGSKhaleej Times
(MENAFN - Khaleej Times) A police spokeswoman in the capital Apia told Reuters by telephone that the quake had not been felt in the city and that she was unaware of any damage. Sydney: A 6.1 ...

 Oct 30 2014 - Ottawa shooting was madmans last desperate act says motherKhaleej Times
(MENAFN - Khaleej Times) Susan Bibeau said her estranged son had wanted to travel to Saudi Arabia to study Islam and the Quran not Syria to join militant fighters. Michael Zehaf-Bibeau killed by ...

 Oct 30 2014 - UAE- Kidnapped women used by Boko Haram on front line: Rights groupKhaleej Times
(MENAFN - Khaleej Times) Suspected militant fighters kidnapped about 30 children including girls as young as 11 in Borno state at the weekend. Lagos: Boko Haram has used kidnapped young women and ...

 Oct 30 2014 - Ottawa gunman made video before attack: PoliceKhaleej Times
(MENAFN - Khaleej Times) Michael Zehaf-Bibeau who was shot dead by police in the parliament in Ottawa after killing a soldier Wednesday was mentally ill and wanted to die his mother wrote in a ...

 Oct 30 2014 - UAE- Nepal bus crash kills 14 injures dozens: PoliceKhaleej Times
(MENAFN - Khaleej Times) Among those killed Friday were two people including a woman who was part of a group heading to the Langtang trekking area. Katmandu: A Nepal bus packed with people ...

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help