It’s official. 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. According
to Forbes, 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.
“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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