It’s OFFICIAL! Apple Buys Beats by Dre For $3 BILLION!
Apple is officially buying Beats for $3 billion, just shy of the rumored price of $3.2 Billion leaked a few weeks ago, the companies announced Wednesday.
Apple will pay $2.6 billion up front, plus another $400 million over time. Apple’s getting stylish hardware from Beats Electronics and a streaming service with Beats Music.
In a statement, CEO Tim Cook said the deal brings together “extraordinary teams so we can continue to create the most innovative music products and services in the world.”
Apple expects the deal to close in late summer or early fall.
Dr. Dre’s estimated stake in Beats by Dre is 20% to 25%.
Meanwhile, Iovine described the deal as a match made in heaven. He said the whole Beats concept was inspired by Apple’s perfect blend of culture and technology.
“I’ve always known in my heart that Beats belonged with Apple,” Iovine said in a statement.
Dre and Iovine are also joining Apple, so Iovine is stepping down from his perch as CEO of the record company Interscope Geffen A&M.