Beats has agreed to buy back 25% of its shares from HTC.
HTC acquired 50% of the headphones and speaker manufacturer for $300 million with a potential view to integrating Beats gear into its own devices. A music service was also thought to be on the cards.
However, retailer this month HTC reported a 27% decline in Q2 revenue and a 58% drop in net income.
HTC’s stake in Beats was therefore reduced to 25% with the original owners taking 75% overall.
Plans for joint ventures between the two companies look set to continue, however. HTC said in a statement that it will continue to work closely on Beats, tipping a joint global marketing campaign for later on in the year.
The company also agreed to extend a low-interest line of credit to Beats for up to $225 million to help finance global expansion and the manufacture of its own devices once its contact with Monster Cable expires at the end of the year.