After weeks of speculation, the Apple-Beats deal is official. According to The New York Post, Apple will purchase Beats Electronics for $3 billion ($200 million less than original expected).
As The Post notes, Dr. Dre's reported 25 percent ownership in Beats will net him $750 million if the deal goes as planned. Whether he will really become hip-hip's first billionaire depends on whether he earns more in his other ventures. According to Forbes, Dre earned $275 million over the past three years. Combined, that figure brings him to just over $1 billion before taxes, however, after takes he will fall just short of that -- unless he has a damn good accountant.
The devaluing of the deal may have been due the fact that a report was leaked showing Beats Music having only 111,000 subscribers in March (compared to Spotify's 10 million paying subscribers and 30 million non-paying).
However, the company is valued highly for its Beats audio business, which recorded sales of $1.3 billion in 2013. Also, Apple currently doesn't have a streaming business, so this acquisition would fill that gap.
More details on the strategy behind the deal will likely come to light during the highly anticipated World Wide Developer Conference, slated for June 2. The Post's sources believe both Dre and Jimmy Iovine will be in attendance.
In related news, John Janick has been named the chairman and CEO of Interscope Geffen A&M, replacing successful label head Jimmy Iovine who is headed over to Apple.
