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. As of yesterday, its remaining stake was 24.84 percent, which it is selling for $265 million.
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.
“Carlyle will work with the Beats management team to continue expanding the brand and building the business both domestically and internationally,” according to the statement.