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.