HTC sells stake in headphone maker Beats for £164m

The partnership saw Beats Audio technology used in the smartphone maker’s flagship HTC One device

Smartphone manufacturer HTC has sold its remaining stake in headphones maker Beats Electronics for $265 million (£164 million).

HTC bought a 50 per cent stake in Beats in August 2011 for an estimated $300 million, but sold the first part of its this back to the company’s founders last year – leaving a 24.84 per cent holding.

The news comes as US private equity firm Carlyle Group is expected to make a $500 million (£309 million) investment in Beats, bringing its value to over $1 billion (£619 million).

HTC said: “Over the past two years, HTC and Beats have enjoyed a solid business partnership in delivering superior mobile audio experiences for consumers worldwide. HTC and Beats will continue to partner as future opportunities arise.”