Dr. Dre to sell just over half of audio company to HTC

12/08/11

Dr. Dre

Dr. Dre is selling just over half of his audio company Beats Electronics to smartphone maker HTC.

It is buying a 51% stake in the rapper's company for $309 million (£190m).

Beats Electronics makes headphones and speakers and was set up by Dr. Dre and music producer Jimmy Iovine.

The purchase will be HTC's fifth acquisition this year, as the company fights to increase share against rivals Apple and Samsung.

The Taiwanese firm said it expected the deal to close in the next few months and to have a number of products that incorporate Beats technology on the market by the end of the year.

Jimmy Iovine, chairman and founder of Beats Electronics, will continue to run the company.

He is also chairman of Interscope Records, which produces albums for the likes of Black Eyed Peas and All Time Low, and a mentor on American Idol.

Dr. Dre founded Beats Electronics in 2006 with the company's headphones costing as much as $600 (£368).