Beats Electronics to launch Spotify contender, itching to drop HTC

By Rizza Sta. Ana

Aug 19, 2013 08:08 AM EDT

The Wall Street Journal reported that rap artist Dr. Dre and music producer Jimmy Iovine is looking for investors to sever its ties with HTC and add cash to expand Beats Music, a new music streaming project. HTC initially acquired a 50.1% controlling stake at Beats Audio for USD300 million in 2011. Beats Electronics and HTC had been engaged in an ownership seesaw after HTC reduced its stake to 25% and was reported to incur a USD4.8 million loss in the process. 

Beats Electronics sell pricey headphones and is commandeered by rap artist Dr. Dre and Iovine. Beats Music is co -chaired by Iovine, Ian Rogers and former Nine Inch Nails frontman and Oscar awardee Trent Reznor.

Dubbed "Project Daisy", the newventure intends to score a share in the digital music streaming market that is currently being led by Spotify and Deezer. Although the project has yet to set a launch date, it has earlier posted job openings and, as an industry insider wrote, "prefer to take their time refining how they will differentiate their own (as a company)."

Beats attempted to raise USD700 million to buy HTC out and settle debts this summer, but failed. HTC interestingly had employed "Iron Man" Robert Downey Jr. for a widely-promoted commercial that might be a message that HTC is veering away from Beats' celebrity influence.

© 2023 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics