HTC To Sell Back Remaining Stake In Beats Electronics For $265 Mln

(RTTNews) - Taiwanese smartphone maker HTC Corp. (HTCXF.PK) said Friday that it agreed to sell back to headphone maker Beats Electronics LLC its remaining stake of 24.84% for $265 million.

In conjunction with this transaction, HTC will also receive the repayment of $150 million promissory note plus accrued interests. The deal is expected to close in the fourth quarter of 2013.

Separately, Beats Electronics LLC also confirmed that it has entered into a definitive agreement to reacquire the minority stake in Beats held by HTC Corp. As a result, HTC will no longer have any ownership stake in Beats.

In addition, Beats Electronics LLC, the audio brand co-founded by legendary artist and producer Dr. Dre and Interscope Geffen A&M Chairman Jimmy Iovine, announced that The Carlyle Group (CG), the global alternative asset manager, has agreed to make a minority investment in Beats.

Carlyle will work with the Beats management team to continue expanding the brand and building the business both domestically and internationally. Additional terms of the transaction, which is expected to close in the fourth quarter of 2013, were not disclosed.

The Washington-based private-equity firm is planning to invest $500 million for a minority stake in Beats Electronics LLC, the Wall street Journal reported citing people familiar with the matter.