Dr. Dre's Beats Electronics Gets $500 Million Investment From Carlyle, Buys Out HTC

Beats Electronics, a maker of high-end headphones whose distinctive branding and ubiquity makes them hard to miss in many urban areas nowadays, has secured a $500 million investment from Washington-based private-equity firm the Carlyle Group.
Carlyle has purchased an undisclosed minority stake in Beats in a deal that values the electronics maker at more than $1 billion. The ballpark valuation comes as no surprise, given that Beats is on track to net anywhere from $1.2 to $1.5 billion in revenue this year, according to published reports.
"These transactions represent the evolution of the financial strength and significant growth prospects of Beats," Jimmy Iovine, Beats co-founder and chief executive, said in a statement.
Founded in 2006 by rapper Dr. Dre and Iovine, chairman of music label Interscope, Beats has come to dominate the market for pricey headphones. According to the NPD Group, Beats has grabbed more than 60 percent of the U.S. market for headphones costing more than $100. Its signature headsets retail for between $200 and $400.