Entertainment company Universal Music is set to receive $448m when it exits US-based headphones manufacturer and streaming service Beats, once Apple completes its $3bn acquisition of the company, Buzzfeed has reported.
Universal has owned a 14% stake in Beats since it was founded in 2008. The Apple takeover is worth $2.6bn in cash and $400m in equity,
The Beats name is made up of two companies. Beats Electronics received $500m in 2013 from private equity firm Carlyle Group and $300m from smartphone maker HTC in 2011, both in return for minority stakes, while streaming service Beats Music spun out of Beats Electronics in 2013.
Beats Music raised $60m in March 2014 from private investors, after receiving $60m in 2013 from Access Industries, the conglomerate that acts as parent company for another major record label, Warner Music.