Report : Beats Audio To Buy Out Remaining HTC Stake For $265 Million
Reports are coming in that HTC is indeed about to sell its stake back to Beats. In 2010, HTC owned 50 percent of Beats, before selling half last year for $150 million. The remaining 25 percent has increased in price considerably since then, as the new deal will close at $265 million.
It seems that Beats has already taken on a new partner in the form of Carlyle Group, which is said to be investing $500 million into Beat’s expansion efforts.
“We are confident that Beats will continue to drive innovation and growth in the premium audio accessory market, particularly as the proliferation of smart phones and tablets stimulate increased consumption of digital media,” Sandra Horbach, a managing director at Carlyle, said in a statement.
Now that the partnership is ending, Beats is free to continue down the path of pushing its Beats audio technology into other products including in-car dashes, HP computers and – of course- its premium headphone line. For HTC, it means a pretty hefty cash infusion that can help the company can (hopefully) use to further facilitate growth and recovery after years of struggle.
Founded in 2006 by rapper Dr. Dre and Iovine, chairman of music label Interscope, Beats has come to dominate the market for pricey headphones. According to the NPD Group, Beats has grabbed more than 60 percent of the U.S. market for headphones costing more than $100. Its signature headsets retail for between $200 and $400.