Beats Electronics, founded by Jimmy Iovine and Dr. Dre, has ambitious prospects to expand beyond its popular headphone products. The horizon includes speakers, automobile audio systems and other consumer electronics, not to mention the impending launch of an online music streaming service.
In order to turn dreams into reality, however, Beats are in talks with an investor that could provide financing, according to a report by the Wall Street Journal. Details and the identity of the potential investor is unknown.
Also, it is reported that there are hopes to buy back Taiwanese smartphone company HTC‘s 25 percent stake in the headphone company in order to make room for new investors.
Although Beats Electronics is notably successful for its explosive growth, investors are wondering whether or not the success is a mere indication of trendiness and high-growth tied to smartphones and tablets. The primary challenge for Beats is going to be establishing itself as a brand beyond the relatively smaller market of headphones.