AllThingsD reports that Peter Chou, CEO of HTC, has announced a $300 million investment in acquiring a majority stake in Beats Audio. Jimmy Iovine, CEO of Beats Audio, has confirmed the reports. Beats audio technology has been implemented into mobile electronics such as headphones, laptops, and tablets. Now HTC wants a chance to implement the beats technology into their phones and to own the majority stake in them.
There is plenty of chatter on the web about this move and whether it is a mistake to invest so much into an audio company. HTC may be demonstrating foresight in this acquisition to their brand. There could be potential success in the beats line branching out from just portable electronics and phones. It is possible that Beats Audio could have a greater future in being placed into televisions or even in vehicles. There was a time when Bose was not seen as a standard in audio system for certain luxury cars.
The investment could also mean HTC want to prevent other phone manufacturers from attaining a partnership with Beats Audio for their phones. According to Peter Chou, the first fruits of this purchase would launch later in 2011. HTC has always been fast in their release time frames.