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How Monster won Beats, but lost the keys to Dre's empire

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Noel Lee Monster stock 1020
Noel Lee Monster stock 1020

A new report from Gizmodo details the origins of Monster's deal to make Beats headphones, revealing how the company's partnership was dismissed so easily when HTC came knocking. According to Monster founder Noel Lee and his son Kevin, their company designed, engineered, and built the headphones. But Monster spent itself into a corner, building the product before Interscope had even agreed to a business partnership. The company had little choice but to sign a deal that gave it manufacturing rights, while ceding ownership of the entire product line to Interscope. Despite the bad deal, Monster hasn't given up on the market — just yesterday the company announced a partnership with rapper Swizz Beats to create a whole new line of headphones called "Diamond Tears."