Dr Dre is set to become the first
billionaire in Hip Hop. Apple Electronics announced today that it has acquired
Dr Dre's Beats Electronics for $3billion. Apple paid $2.6billion cash upfront
and gave $400million in stock that will vest over time.
The $3billion purchase price includes Beats Music, the sister company that runs a subscription streaming music service. As part of the deal, Beats co-founders Dr. Dre and Jimmy Iovine will join Apple in undisclosed roles.
The $3billion purchase price includes Beats Music, the sister company that runs a subscription streaming music service. As part of the deal, Beats co-founders Dr. Dre and Jimmy Iovine will join Apple in undisclosed roles.
"Music is such an important
part of all of our lives and holds a special place within our hearts at Apple,”
CEO Tim Cook said in a statement released today. “That’s why we have kept
investing in music and are bringing together these extraordinary teams so we
can continue to create the most innovative music products and services in the
world.”
This
acquisition is Apple’s biggest and largest acquisition since the inception
of the company. Apple made $171 billion revenue last year, while Beats made $2
billion.
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