Report: HTC eyes MOG acquisition to create mobile music service
HTC's Beats Electronics unit is reportedly in talks to acquire digital music startup MOG in an effort to create an all-you-can-eat mobile music service available across HTC devices and Beats headphones.
Citing a source familiar with the matter, the Associated Press reports negotiations are still occuring. But earlier this week, Business Insider reported the deal was complete. MOG declined comment, stating "We're always looking for the best opportunity for our business and shareholders, but don't comment on specifics of those conversations. Nothing to confirm at this time."
Just weeks ago, MOG CEO David Hyman denied reports the company was for sale. He told Reuters that MOG now touts 500,000 active users, but declined to specify how many are paying to access the service.
Last month, GigaOM reported HTC is building its own streaming platform in a move to differentiate its Android smartphones and tablets from rival devices, while at the same time threatening the dominance of digital media upstarts like Spotify. Sources say HTC is developing the service in partnership with music producer and Interscope-Geffen-A&M chairman Jimmy Iovine, and will preload it as the default music client on HTC devices. It is unclear how MOG fits into this equation.
In August 2011, HTC purchased a $300 million, 51 percent majority stake in Beats Electronics, founded by Iovine and hip-hop icon Dr. Dre. At that time, HTC Peter Chou told reporters "I think this partnership is really built on the core belief that amazing audio is a key to the mobile experience. HTC is always looking for opportunities to differentiate and create emotional experiences with consumers. We think that this a very good opportunity for HTC to continue to differentiate in the market."
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