Dr. Dre receives $500 million investment for Beats by Dre from Carlyle Group, whom bought out HTC
By DJ Kid Fresh
Hip Hop Vibe Staff Writer
What this man has done for both music and the music industry goes without saying, this is Dr. Dre. A man who helped bring about all of the biggest stars from Eazy-E to Ice Cube to Eminem to Game, Dr. Dre has done it all. Dr. Dre made Aftermath Entertainment into a powerhouse label.
Back in 2008, Dr. Dre and Interscope Records founder, Jimmy Iovine, came together for the headphones line, Beats by Dre. HTC, the smartphone maker, helped bring Beats by Dre to life and they were backing the brand until today. Dr. Dre shouted HTC out on the few records he made since the deal went through.
HTC, however, is no longer a part of Beats by Dre, as Carlyle Group bought them out at a value of $500 million. The minority investment has led to a new era for Dr. Dre and his brand, Beats by Dre. Beats Music is the parent company and this move continues their growth, which Carlyle Group mentioned in their statement.
Read Carlyle Group’s statement below:
“These transactions represent the evolution of the financial strength and significant growth prospects of Beats,” Iovine, Beats CEO, said in a statement. “Carlyle is a fantastic investment partner and we look forward to building the next chapter of Beats.”
The Carlyle Group, which Private Equity International ranked as the second largest private equity firm in the world and is known for its association with powerful political figures, has $180 billion of assets under management as of June 2013. The deal with Beats, which is expected to close in the fourth quarter, is thought to help the company expand its reach internationally.“Carlyle has a strong history of helping great brands expand globally,” Carlyle managing director and head of consumer and retail Sandra Horbach said in a statement, “and we are thrilled to partner with Jimmy Iovine, Dr. Dre and their talented management and product teams.”
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