Beats Electronics Buys Out HTC! According to the New York Times, Beats Electronics has secured a $500 million investment from the Carlyle Group and bought out the 25 percent stake in itself from HTC for $265 million.
In 2011, the Taiwanese smartphone maker HTC bought a 51% stake in Beats for $309 million, but then sold half of it back to Beats Electronics in 2012. By June 2013, according to NPD’s stats, Beats captured 59% of the U.S. premium headphones market, while HTC struggled financially throughout most of 2012 and 2013. This is probably some of the reason behind the overall buy out.
Beats probably will no longer be featured on HTC’s devices after ending it’s partnership with HTC. However, the financial support the company has received from Carlyle will help it spread into new markets. According to reports, the Carlyle Group values Beats Electronics at $1 billion. Not too shabby Dr. Dre!