HTC Spends $300 Million To Acquire Headphone Manufacturer Beats

According to HTC’s announcement on Wednesday, it plans to spend US$300 million to acquire a majority stake in headset maker Beats Electronics in order to improve the sound quality of HTC phones.

The acquisition may be completed in the third quarter of 2011. HTC said that the acquisition of Beats is based on its experience in headphones to improve the sound quality of HTC phones, including music, games and movies. HTC CEO Zhou Yongming said: “This will provide us with opportunities for innovation. They can bring a professional-grade sound experience.”

At the same time, HTC added that this share purchase will not affect the management of Beats, including the founder Dr. Management, including Dre and Jimmy Iovine, will continue to perform their duties. Beats president Luke Woode said that Beats will create a better experience on smartphones.

According to the current market price, the price of the Beats headset is between 150 and 300 US dollars, which is generally higher than that of the Apple iPod and iPhone. Beats' pursuit of sound quality and achievements in this area have been widely recognized in the industry.