Apple confirms $3billion deal for Dr Dre’s Beats

Dre Iovine

It is possibly the worst kept secret in music, but Apple have now officially confirmed that they have agreed a $3billion deal to buy Dr Dre’s headphone brand, Beats.

Jimmy Iovine, who co-founded Beats with Dr Dre, will leave record company Interscope to work at Apple as part of the deal. Dr Dre will also join the California based tech giant.

In a statment, Iovine commented: “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.”

Apple will pay $2.6 billion for the two businesses in addition to approximately $400 million “that will vest over time.” Announcing the deal, Apple’s CEO Tim Cook stated: “Music is such an important part of all of our lives and holds a special place within our hearts at Apple. 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.”

Beats Electronics was founded in 2006 and put out its first headphones in 2008. Dr Dre’s involvement with the company has made him the richest artist in hip hop. Beats made $1.2 billion last year, earning Dre a cool $200 million and leaving him with a total estimated worth of $550 million.

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