Beats Electronics Buys Out HTC for $265 Million

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, The New York Times reports

An August report from The Wall Street Journal claimed Beats is looking for an investor, as well as a way out from its partnership with HTC

While the exact details of the deal with Carlyle have not been disclosed, NYT's sources claim Carlyle values Beats at more than $1 billion. The asset management firm will also take two (out of six) seats in Beats' board

Beats Electronics has grown by leaps and bounds since its initial partnership with HTC. In 2011, the Korean smartphone maker bought a 51% stake in Beats for $309 million, but sold half of it back to Beats in 2012. By June 2013, according to NPD's stats, Beats captured 59 percent of the U.S. premium headphones market, while HTC struggled financially throughout most of 2012 and 2013 Read more...