Apple to Buy Beats for $3 Billion
By Shannon Carlin
“On to the next episode.”
Dr. Dre and his Beats are moving to Apple after the company confirmed they are buying the electronics and technology company for $3 billion. That price is slightly down from the reported price of $3.2 billion, but still makes it Apple’s biggest acquisition.
According to The New York Times, Beats co-founders Dr. Dre and Jimmy Iovine will work under Eddy Cue, Apple’s exceutive in charge of Internet services. The deal is expected to be approved in late 2014 wih Iovine leaving his current position as Chairman and CEO of Interscope Geffen A&M once the deal goes through. Iovine will be succeeded by John Janick, currently the COO and President of IGA.
Apple also stated that the Beats brand will remain separate from their own and that they will continue to “offer both Beats’s streaming music service and premium headphones.”
Iovine also confirmed the deal via Beats’ blog, writing, “I’ve always known in my heart that Beats belonged with Apple. The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”
While Dre is looking to become the “first billionaire in hip-hop” Forbes reported that after taxes, the deal likely leaves Dre “with a net worth in the neighborhood of $800 million. It’s not quite enough to land on the Forbes 400, but it would easily make him hip-hop’s richest man, topping current champion Diddy by $100 million.”