HTC Sheds Remaining Beats Stake as Carlyle Group Invests in the Audio Company
HTC’s days as a part owner of Beats Electronics are coming to an end.
The companies announced Friday that Beats is buying back the Taiwanese phone maker’s remaining stake in the company. At the same time, according to a source close to the deal, Carlyle Group is investing $500 million for a minority stake in Beats. HTC is getting $265 million for its 25 percent stake in Beats, sources said, and will continue to include Beats Audio in some of its devices.
“These transactions represent the evolution of the financial strength and significant growth prospects of Beats,” Beats founder Jimmy Iovine said in a statement. “Carlyle is a fantastic investment partner and we look forward to building the next chapter of Beats.”
The deals are expected to close in the fourth quarter.
Beats and HTC representatives were not immediately available for comment.