Apple acquires Dr. Dre’s Beats for $3.2 billion

Sections: Apple Business, Apple News, iTunes, iTunes Music, iTunes Radio

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This is no longer a rumor: Apple has officially acquired Beats. For how much? $3.2 billion. That’s a lot of money, and the amount makes it Apple’s biggest purchase to date.

Personally, this comes as a a surprise, but you know Apple when it comes to business deals. It’s so secretive. Having been rivals in the audio equipment industry, it’s interesting to know what Apple will do with Beats. The latter’s music streaming services were part of the business deal, so the Cupertino company could be using that. We mentioned last month that Apple is working on a music streaming service, so this must be it.

The first rumor we heard about this deal was that it will be announced next week. But a few hours after it was out of the rumor mill, one of Beats executives confirmed the deal. Actor Tyrese Gibson, one of Beats founders, posted the news on his Instagram. That’s an informal way, but it’s becoming more common.

Apple hopes to bring iTunes to a different level. With Beats as part of Apple now, Tim Cook and company could bring in more audiophiles and regain the top position. Reportedly, Apple’s album and individual track sales were down to 13% and 11%, respectively, according to Nielsen SoundScan.

So Beats is now Apple’s. The huge payout means Dr. Dre is a billionaire.

Via [TheVerge]

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  • pro_audio_guy

    “With Beats as part of Apple now, Tim Cook and company could bring in more audiophiles ”
    Seriously? Find me an audiophile that does not think that Beats are a joke. Beats are a fashion brand. I hope this not a hint at the influence of Angela Ahrendts. Beats are the hip-hop version of Bose noise canceling headsets seen on the necks of middle-aged frequent fliers.

    • Kirk Hiner

      I would agree. I’ve never been a fan of Beats. However, they’re better than Apple’s earbuds. Audiophiles will upgrade regardless, but those who don’t will be better off…if only slightly.

  • Mel Snyder

    I always find it amusing to read the comments from the “clown car” about why wildly successful companies do anything. All those who condemn Beats phones would probably laugh at Harmon Karman – a financially successful company that capitalized on it technology to dominate auto entertainment/nav markets worldwide.

    Let’s just wait and see what Apple knows beyond the surface. It’s all about making money.

  • Toe rocket

    I always laugh when i pass the beats rack, I wondered who would buy that, I am shocked its apple. They must be assuming they can get at least 7bn back by having this entity on board. I don’t see it my self, although very successfu,l it seems as is, a fashion brand for generation take your pick.
    Is it for the talent ? The streaming service ? I have feeling we are seeing some nice corporate m&a , thumbs up from the bankers and board and a big wtf from the employees.