Dr Dre has
offially become the first billionaire in Hip Hop as Apple Electronics announced
that it has acquired Dr Dre's Beats Electronics for $3billion.
According to
Forbes, Apple paid $2.6billion cash up front 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.
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