updated 08:58 am EDT, Fri September 27, 2013
Carlyle Group moves in as new investor
As expected, Beats Electronics has split from its partnership with HTC. The latter company has announced that it has sold back its 25 percent stake in Dr. Dre's audio brand, after dumping its controlling stake last year. The latest stock buyback is valued at $265 million.
Beats solicited the help of The Carlyle Group to essentially take over HTC's minority stake. As part of the deal, the investment firm will place two of its employees on Beats' board of directors.
"Carlyle has a strong history of helping great brands expand globally, and we are thrilled to partner with Jimmy Iovine, Dr. Dre and their talented management and product teams," Carlyle managing director and head of consumer and retail Sandra Horbach said in a statement.
Beats claims to hold a dominant position in the $100+ "premium headphone" category, despite competition from established headphone brands and other style-focused offerings tied to musicians such as 50 Cent, Ludacris and Bob Marley.