Apple Buys Dr. Dre's Beats For 3 Billion
Three weeks after news of Apple acquiring Beats Electronics leaked to the media, the deal has become official. On Wednesday, Apple announced its 3 billion dollar deal with Beats.
In an interview with re/code, Apple CEO Tim Cook explained the longstanding relationship between the two companies. “We have known these guys forever. We’ve dated, we’ve gone steady and now we are getting married.”
The deal, which will close sometime in September, is for 2.6 billion in cash, and $400 million in Apple stock. Beats founders Jimmy Iovine, 61, and Dr. Dre 49 will hold key positions in Apple’s music division. This is the biggest deal in Apple’s history.
Beats By Dre is known for its headphones and music streaming service which launched in 2014. Of Iovine and Dre, Cook says, “These two guys have a rare set of skills. It’s like finding a particular grain of sand on the beach. It’s that rare.”