On Friday, Beats By Dre parent company Beats Electronics
received a hefty investment in the amount of $500 million from Washington based
private equity company Carlyle Group. This move will allow for the global
expansion of both companies, as well as strengthen product development moving
forward.
The $500 million investment brings Beats Electronics
(co-founded by Dr. Dre and Interscope chairman Jimmy Iovine) value to excess of
$1 billion. The Carlyle Group currently stands as the second largest investment
company in the world with over $180 billion in assets. The deal will be
finalized by the end of the year.
The deal is made in conjunction with Beats purchasing back
25% of the HTC Group’s stake in the company. Beats Electronics is currently
looking to expand its senior management, which currently consists of Dr. Dre,
Jimmy Iovine, and president Luke Wood.
With the success that Beats by Dre this move only positions
the company to expand its reach and become more of a global brand. Beats
currently owns more than half of the total market for headphones over $100
(56%), and at the end of last year released two new products; the Beats Pill, a
wireless speaker with built in Beats by Dre speakers, and the executive
headphones.
With the new investment made by Carlyle and the search for
more senior management, Beats by Dre is positioning itself to strengthen their
control over the premium headphone market. The brand has exhibited consistency
in its products since its early beginnings and the sky’s the limit for the next
level of Beats by Dre products. Be on the lookout for another big year for the
Beats by Dre brand coming in the next year.
