Apple Buys Beats By Dre For $3Billion

The deal between Apple Electronics and Dr Dre's Beats Electronics finally took place yesterday.

Apple Electronics announced 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.

Read More

NEWS: Dr Dre To Sell Beats By Dre For $3.2 Billion

Just recently, Forbes listed out the top richest rappers in America, and Diddy came first with $700 Million while Dr. Dre came second with $550 Million.

TMZ now reports that Apple is about to enter into a major deal with the US rapper by acquiring beats by dre, and if it goes through then, the Doc will sit at the top of the list of the richest American rapper.

See TMZ reports below:

Dr. Dre could be days away from being the first rapper turned BILLIONAIRE ... thanks to a mega-deal for Apple to snatch up his Beats Electronics brand.

Apple will reportedly buy Beats for a whopping $3.2 BILLION -- and since Dre and Interscope honcho Jimmy lovine created the brand ... it's a safe bet they will walk away with a huge chunk of that cash.

Dre and Jimmy started the brand back in 2008 with headphones -- but now they're also making bank off speakers, car audio systems, and a streaming service.

The deal could close next week ... and would be Apple's biggest acquisition ever.

Dre came in #2 on Forbes' most recent list of hip hop's wealthiest artists -- with a net worth of $550 million ... while Diddy was #1 at $700 million.

The Apple deal -- first reported by Variety -- could easily push the Doc to the top of that list.

Read More