Apple set to acquire Beats by Dre for $3.2B
Dr. Dre has made more money making headphones than he has ever made making beats and ironically Beats is about to make him even richer. According to reports, tech goliath Apple is planning to purchase Dr. Dre and Jimmy Iovine’s Beats Electronics.
Apple is reportedly finalizing a deal to acquire Beats Electronics – the audio devices manufacturer popularly known for the Beats by Dre brand of headphones – for $3.2 billion.
According to media reports, the deal will supposedly be announced next week, and once concluded would be Apple’s largest acquisition ever. The buy-out would see Apple take control of Beats’ hardware business and its recently-launched music streaming service Beat Music.
In August 2011, manufacturer HTC purchased 50.1% of Beats Electronics for $300 million. In less than three years later, Beats Electronics purchased the shares back for $415 million. Dr. Dre accumulated $100 million in pretax earnings from the 2011 sale and could make upwards of $1 billion from the sale with Apple.
Dr. Dre was second on Forbes’ Cash King List for highest net worth among Hip Hop celebrities this year.