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hunting another investor in Beats. The manufacturer of high-end audio, which for several weeks looking for a new partner helmets, announced Friday the signing of an agreement to buy the 24.84% stake that the Taiwanese smartphone manufacturer HTC still held in its capital. It will pay for this $ 265 million. Beats also indicated that the U.S. investment fund Carlyle would take a minority stake. The amount of the transaction is expected to close in the fourth quarter, was not disclosed, but according to the “Wall Street Journal”, the fund will invest $ 500 million, which would value the company created in 2008 to more a billion dollars.
arrival comes as Carlyle founders of Beats – producer Jimmy Iovine and the famous rapper Dr. Dre – plan to diversify its activities. In addition to the famous helmets “fashion”, they would produce speakers, audio equipment for cars and launch a music streaming service by the end of the year. Carlyle has already warned that it would work with the current management team to enhance the brand and grow the business in the United States and internationally. Beats needs money to finance its growth. The company had tried to raise $ 700 million at the beginning of the summer to finance its proposed acquisition and debt. In vain.
HTC entered the capital Beats in 2011, buying 50.1% stake for $ 300 million, which allowed him to equip its mobile technology Beats. The following year, his participation was nevertheless reduced to 25% of capital. It must be said that the smartphone maker has great problems.
Despite prices ranging between 200 and 400 euros, sales of helmets arch took off in a few years. The sound quality and fashion effect have allowed Beats achieve a turnover of $ 1 billion last year, against less than 200 million in 2010. The brand represented in June 59% of the market for high-end audio headphones in the United States, according to NPD Group. But the market growth slows. In France, between January and May, he even declined by 3% in volume and 8% in value, according to GfK.
The recent growth of the company impresses investors, but they wonder if the success of these helmets, beyond the hype, can really be sustained and replicated elsewhere. For Beats, success remains to be confirmed.
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