Published on January 13th, 2012 | by Alan Cross4
So Dr. Dre and Monster Are Breaking Up?
Well, that didn’t last long. Last year, 51% of Dre’s brand of Beats headphones was acquired by HTC for $300 million. Monster, the people who make those ultra-expensive cables, were in charge of manufacturing.
The whole Beats thing was so successful for Monster that they cornered 53% of the US headphone market, which meant about a $2 billion hunk of cash.
But Monster’s five-year manufacturing deal with Beats is coming to an end. The arrangement won’t be renewed because of (a) money; and (b) an ego issue over who deserves the credit over how the headphones sound. Dre and his partner Jimmy Iovine might be annoyed at Monster’s litigious predilictions regarding anyone who dares use the word “monster” in the name of any product or service.
While this is obviously bad news for Monster, it gets Dre and Iovine a chance to sell off the manufacturing rights of Beats for even more money.
The rich just keep getting richer, you know?