Home All Stories Apple to Acquire Dr. Dre's Beats Electronics for $3 Billion

Apple to Acquire Dr. Dre's Beats Electronics for $3 Billion


beats by dr dre sqFurther bolstering its music offerings, Apple late Wednesday said it will pay $3 billion to acquire Dr. Dre’s Beats Electronics, the developer of a subscription streaming music service and maker of popular headphones, speakers and audio software. Under the deal, expected to close by the end of September, the company will make an initial payment of $2.6 billion, plus another $400 million that will vest over time. As part of the acquisition, co-founders Jimmy Iovine and Dr. Dre will join Apple in unspecified roles. “Music is such an important part of Apple’s DNA and always will be,” said Eddy Cue, Apple’s senior vice president of Internet software and services. “The addition of Beats will make our music lineup even better.” Launched in 2008 as the brainchild of artist and producer Dr. Dre and Iovine, the chairman of Interscope Geffen A&M Records, California-based Beats Electronics comprises the Beats by Dr. Dre family of consumer headphones, earphones and speakers, as well as Beats Audio software technology and streaming music subscription service Beats Music. Apple plans to sell the company’s products online, as well as through its retail stores and select resellers. Read more