UPDATE 1-Carlyle invests in Dr. Dre's Beats, valuing company at more than $1 bln


(Corrects headline to insert words "more than")

* Carlyle to invest $500 mln - source

* Beats buys back HTC stake in company for $265 mln

Sept 27 (Reuters) - Beats Electronics LLC, a maker ofheadphones founded by rapper Dr. Dre and music producer JimmyIovine, will get a $500 million investment from Carlyle Group, a person familiar with the matter said, valuing thecompany at more than $1 billion.

Beats said on Friday that funds to buy the minority stakewould come from Carlyle Partners V, a $13.7 billion buyout fund,but did not disclose details.

Beats, which also sells earphones and speakers under theBeats by Dr. Dre brand, said it would buy back the 24.84 percentstake in the company held by Taiwan smartphone maker HTC Corp.

HTC, which has been battling stiff competition from SamsungElectronics Co Ltd and Apple Inc, said itwould sell the stake for $265 million and record a pretax profitof about $85 million. (http://link.reuters.com/vyw43v)

HTC bought a 50.1 percent stake in the company in 2011, butsold half of it a year later. (Reporting By Maria Ajit Thomas in Bangalore and GregRoumeliotis in New York; Editing by Maju Samuel)

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