Apple Buys Dr. Dre’s Beats Electronics for $3 Billion
After several weeks of rumors speculating the negotiation between Apple and Beats Electronics, the two corporations have finally reached a deal to the sweet tune of $3 billion.
The computer conglomerate has officially purchased Beats in a deal that will close by the end of September. Included in the package are Beats Electronics and, most interestingly, Beats Music, the company’s music-streaming service that launched this past January. According to Billboard, sources say that Apple is looking to move towards on-demand streaming and away from downloads, which could relate back to their acquisition of Beats’ streaming service.
Jimmy Iovine, chairman of Interscope-Geffen-A&M and founder of Beats, and hip-hop star Dr. Dre will now work for Apple in executive roles, through their new job specifics haven’t been publically shared as of yet. Iovine and Dr. Dre will both be making hundreds of millions from the deal, a pretty amazing sum for the company they first launched just eight years ago.
The purchase of Beats is Apple’s biggest purchase deal to-date, but we doubt they’re sweating too much over the hefty price tag. Apple reported over $45 billion in revenue in its last quarter alone. They’re doing just fine — and with Beats they’ll be doing even better!