HTC buys 51% in Beats Electronics

Mobile phone maker HTC Corporation today said that it had bought 51% stake in Beats Electronics for $309 million.

"The stake of 51% in Beats Electronics LLC is worth up to $309 million," a company spokesperson said.

Under the new deal, the two companies will focus on bringing high performance sound to HTC phones.

"It's an exciting brand that has been built around providing something very special, and we believe our strategic partnership will provide customers with unbeatable sound on HTC phones," Peter Chou, CEO of HTC Corporation said in a statement.

Beats Electronics sees this deal as an opportunity for taking sounds through smartphones to consumers in the way the artist intends it to be.

"For Beats by Dr Dre, this represents a critical step in our continued mission to clean up the destruction of audio caused by the digital revolution and re-engineer how sound is delivered," Jimmy Iovine, chairman of Beats by Dr Dre.

Beats Electronics will continue to operate autonomously with Iovine as Chairman and Luke Wood as President and Chief Operating Officer with its current business partnerships that include Monster Cable Products, Hewlett Packard and Chrysler Group and others.

Iovine will also continue serving as Chairman of Interscope Geffen A and M Records.