Taipei, July 4 (CNA) Beats Electronics, a unit of Taiwanese handset maker HTC Corp., has acquired certain assets owned by digital music subscription service MOG Inc. through subsidiary Daisy LLC, according to an HTC filing with the Taiwan Stock Exchange on Tuesday.
HTC said the US$14 million deal was approved by Beats' board of directors and the amount "was negotiated by both parties involved."
HTC declined to comment on the filing or provide further details related to the deal.
Beats said in a statement Monday that it had agreed to acquire the award winning on-demand digital music service MOG.
"This is Beats Electronics' first acquisition, and represents a significant milestone in the company's commitment to creating the best end-to-end premium music experience for both fans and artists alike," the statement by the American headphone vendor said.
MOG's music service will continue to operate as an independent company with no immediate changes to the service or impact on MOG users and subscribers in any way, according to the Beats statement.
MOG's "all-you-can-eat" listening service provides access to a vast library of over 15 million songs through its mobile apps on consumer electronics devices such as iPhone, iPad, iPod Touch and Android smartphones.
In March this year, reports emerged that Beats Electronics was close to buying MOG, which may eventually integrated as a discounted service to buyers of Beats' headphones and HTC smartphones.
Under a separate partnership, the on-demand digital music service could also be offered in notebook computers made by Hewlett-Packard Co.
HTC announced in August last year that it would invest US$309 million to acquire a 51 percent stake in Beats, a high-end headphone and speaker maker established in 2006 by U.S. rap music star Dr. Dre and producer Jimmy Iovine.
Eyeing Beats' success in harnessing the popular culture market among the younger generation through its stylish and trendy products, HTC said it would use the partnership to "bring a high performance sound" to its phones.
(By Jeffrey Wu)