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HTC invests US$10 million to acquire a stake in the fast-growing online music service provider KKBOX Inc. HTC will purchase an 11.1 percent stake in KKBOX via its recapitalization plan and also take a seat on KKBOX’s board of directors, it said in a statement. The investment is expected to boost HTC’s presence in the online music space as KKBOX has plans to move into Japan and other Asian markets.
“Music is one of the fastest growing segments in digital content and it is a key aspect of HTC’s content and services strategy,” chief executive officer Peter Chou (周永明) said in the statement.
HTC and KKBOX have cooperated since early 2004 in line with the smartphone vendor’s move to provide more localized music services and applications to the smartphone users.
“This investment is expected to help fuel additional advances in future devices, especially in the Japan and Chinese-language smartphone markets,”. KKBOX chairman Lambert Chien (簡民一) viewed the partnership as a move to enhance the appeal of its music service.