News: Dr. Dre & Jimmy Iovine Fatten Their Wallets W/ $500 Million Hook-Up
Friday, Sep 27, 2013 12:25PM
G-Unit's 50 Cent is going to have even more hurdles to jump over for SMS Audio to reach the same level of success as Beats By Dre as reports claim the mega company has found a $500 million investor.
According to reports, music moguls Dr. Dre and Jimmy Iovine's headphones empire has only grown stronger thanks to a significant new business partner.
Jimmy Iovine and Dr. Dre have found the deep-pocketed investor they were seeking for Beats Electronics. Carlyle Group, a DC-based private-equity firm, is investing $500 million for a minority stake in the company, The Wall Street Journal reports, The new investment values beats at more than $1 billion, significantly north of the roughly $600 million valuation put on the company by an investment from HTC two years ago. Carlyle will become a shareholder and is expected to take two of the six seats on Beats' board. (HITS Daily Double)
The Interscope Records CEO has already confirmed the power move and noted what it meant for Beats' future.
HTC said today it has agreed to sell back its remaining stake in Beats for $265 million; it paid around $300 million for a majority stake in 2011. Iovine told the paper that the latest transactions reflect the company's "significant growth prospects," while Carlyle's Sandra Horbach said her firm is "confident that Beats will continue to drive innovation and growth in the premium audio accessory market." (HITS Daily Double)
Dre's Beats company helped land him a top three spot on Forbes' "World's Highest Paid Hip Hop Artists" list behind Diddy and Jay Z this week.
Hip-hop's net worth king claims his first annual earnings crown thanks mostly to the success of Ciroc vodka. Other ingredients in his cash cocktail: record label Bad Boy, clothing line Sean John and, soon, cable channel Revolt. Lost his hyphen but gained double-digit millions from lucrative live shows, Armand de Brignac champagne, D'Ussé cognac, Roc Nation label/management firm and other ventures. Last year's Cash King slips two spots, no longer boosted by a nine-figure payout for selling part of Beats by Dr. Dre in 2011. But he's still cashing in on the ubiquitous headphones, expanding the company he founded with Interscope chief Jimmy Iovine to include a long-awaited streaming music service. (Forbes)
Last year, the Doc's former N.W.A. partner Ice Cube noted Dre is most concerned with his buzzing Beats By Dre headphones these days.
Still to this day, there is no official word on 'Detox,' and Dre has even stated that he was taking a break from music to focus on other things in his life. Aside from music, Dr. Dre's Beats By Dre headphones have become a massive success, and it seems the super producer has focused most of his time and energy to that particular business venture. Fellow N.W.A. rapper Ice Cube recently addressed the issue of Dre's multiple delays on 'Detox' album, which coincides with the aforementioned statements about the Beats by Dre headphones. In a recent interview with Sway, Ice Cube stated, " "Honestly? Them headphones are selling, selling, selling. What would you rather sell somebody: $300 headphones, or a $10 tape?" (This Beat Goes)