Carlyle invests in Dr. Dre's Beats, valuing company at more than $1 billion
(Reuters) - Beats Electronics LLC, a maker of headphones founded by rapper Dr. Dre and music producer Jimmy Iovine, will get a $500 million investment from Carlyle Group (CG.O), a person familiar with the matter said, valuing the company at more than $1 billion.
Beats said on Friday that funds to buy the minority stake would come from Carlyle Partners V, a $13.7 billion buyout fund, but did not disclose details.
Beats, which also sells earphones and speakers under the Beats by Dr. Dre brand, said it would buy back the 24.84 percent stake in the company held by Taiwan smartphone maker HTC Corp (2498.TW).
HTC, which has been battling stiff competition from Samsung Electronics Co Ltd (005930.KS) and Apple Inc (AAPL.O), said it would sell the stake for $265 million and record a pretax profit of about $85 million. (link.reuters.com/vyw43v)
HTC bought a 50.1 percent stake in the company in 2011, but sold half of it a year later.
(Corrects headline to insert words "more than")
(Reporting By Maria Ajit Thomas in Bangalore and Greg Roumeliotis in New York; Editing by Maju Samuel)