News

Dr. Dre’s Beats electronics worth nearly $1 billion

Dr. Dre’s Beats electronics worth nearly $1 billion

BILLION DOLLAR BEATS: The electronics company started by Dr. Dre is worth about $1 billion. Photo: Associated Press

Dr. Dre’s Beats Electronics company is set to be valued at a whopping $1 billion after taking on a major new investor.

The super-producer established the audio firm in 2008 with Interscope Records executive Jimmy Iovine, and their Beats By Dre headphones and speaker lines have become huge hits on the market, with superstars including Justin Bieber, Lady Gaga, Sean ‘Diddy’ Combs and Nicki Minaj each landing their own ranges.

The massive success of the brand has attracted interest from executives at private equity organisation the Carlyle Group, known for its defense and aerospace companies, who have signed a deal to pump an extra $500 million into Beats Electronics in exchange for an undisclosed stake in the firm.

The new investment will boost the worth of Beats Electronics to $1 billion, according to Reuters.

News of the Carlyle Group’s purchase comes as bosses at another investor, Taiwanese cell phone makers HTC, announced plans to sell off the remaining 25 percent of its stake in Dre’s brand.

HTC chiefs bought a 51 per cent cut of Beats Electronics in 2011 for $300 million.

Hottie of the Day

Nov. 24, 2014