Carlyle invests $500M in Beats Electronics

|About: The Carlyle Group (CG)|By:, SA News Editor

The $500M investment in the maker of colorful and expensive headphones founded by Dr. Dre and Jimmy Iovine values the company at more than $1B, reports the NYT. Carlyle (CG) will also receive two of six seats on Beats' board. Beats will also buy back the 25% stake in itself held by Taiwan's HTC.

Beats has about 64% of the market for headphones costing more than $100, according to NPD Group, and has moved into speakers and sound systems for computers and phones.