Apple Officially Acquires Beats Electronics for $3 Billion
It’s official, one of the tech world’s most poorly kept secrets was finalized last night for both Apple and Beats Electronics. The state of purchase for Dr. Dre and Jimmy Iovine’s company has been tallied at an even $3 billion according to Apple, which is a slight mark down from the original $3.2 billion figure quoted upon its first rumored announcement.
The marriage between the two companies represents an acquisition that’s to date Apple’s biggest corporate purchase ever. It’s an interesting contrast from a few years ago when Dr. Dre himself spoke to a very lively Steve Jobs over the topic of iTunes and the future of digital music during an event over iChat.
Along with acquiring the hardware side of the headphone merchandise, Apple will also have access to the Beats music streaming service, which gives the corporate giant a competitive edge against rival streaming offerings like Rdio, Google Play and Spotify.
According to a statement given to The New York Times, Timothy D. Cook, Apple’s CEO, made reference to the welcomed ideas both Dre and Iovine could bring to the vision of “thinking differently.”
“These guys are really unique,” Cook said. “It’s like finding the precise grain of sand on the beach. They’re rare and very hard to find.”
As a result of the deal, Beats will be unaffected from a branding stand point and will continue to retain its aesthetic look and signature “b”. Apple’s role will be to provide the funding and further integrate the Beats’ ecosystem within its own offerings.
While Dr. Dre may not technically be a billionaire yet with an estimated 20 to 25 per cent stake in the acquisition, he will still stand as one of the the richest hip-hop moguls in the industry’s history.