By Lisa Johnston
New products on display at the American International Toy Fair, held in N
NEW YORK — HTC is selling its Beats Electronics shares back to the company, a deal expected to close in the fourth quarter.
HTC purchased a 51 percent equity stake in Beats Electronics in August 2011. Upson its sale back to Beats for $265 million, HTC’s remaining stake was 24.84 percent.
HTC noted in the statement that it would also receive the repayment of a $150 million promissory note plus accrued interests.
In its own statement, Beats Electronics acknowledged the HTC buyback and also announced that asset manager The Carlyle Group will make a minority investment in Beats. Beats is a privately owned company, and financial terms were not disclosed. Representatives for Beats did not return a request for more details on the deal as of this writing, but The New York Times reported Carlyle is paying $500 million, “valuing the music company at more than $1 billion.”
The statement from Beats said, “Carlyle will work with the Beats management team to continue expanding the brand and building the business both domestically and internationally.”
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