Update: via NBC
The deal is expected to close in the fiscal fourth quarter. Apple said it will pay $2.6 billion in cash and another $400 million that will vest over time.
Founded by rapper and producer Andre Young (aka Dr. Dre) and music mogul Jimmy Iovine, Beats Electronics is a key vendor in the premium headphone market. Apple reportedly began talks to buy the company in early May. Both Young and Iovine will join Apple as part of the deal.
“Iovine and Dre are kindred souls of Apple,” Apple CEO Tim Cook told CNBC in an interview.
Beats’ profit margins in the headphone market may be substantial. A pair of its high-end headphones retail for as much as $450, but production costs across the brand run only about $14 a pair, according to The New York Times. Apple said the deal would add to earnings in fiscal 2015.
As I stated on other blog posts about Billboard’s anonymous sources (stating there was a snag in this deal because of the Tyrese/Dr. Dre premature viral video announcement), was pure bullshit. No way that video would affect a deal of this mangnitude and Billboard and its sources were reaching.
via NY Post
Apple’s biggest deal in its history just got a little cheaper.
The tech titan is expected to announce its acquisition of Beats Electronics this week — at the slightly reduced price of $3 billion, The Post has learned.
A report in the Financial Times earlier this month tipping the deal put the price at $3.2 billion.
That may have been the case, but negotiations between Apple CEO Tim Cook and the company co-founded by Dr. Dre were not helped by a leaked report that had Beats Music with just 111,000 subscribers to its streaming service in March.
Dr. Dre’s burgeoning relationship with Apple has been in the making for sometime, so all the stiff suit analysts can’t stop with the shock and awe that this deal is going down. Dre and Jimmy Iovine from the start said that they wanted to build the new Apple with Beats Electronics.
Hip Hop’s first billionaire Dr. Dre celebrates with actor/musician Tyrese on his impending deal with Apple to sell his Beats Electronic company for $3.2 billion according to reports.
Suge Knight is gonna be pissed once again, but there is nothing he can say to stop Dre from closing on one of the smartest and biggest deals in the history of the music industry.
Dr. Dre could be days away from being the first rapper turned BILLIONAIRE … thanks to a mega-deal for Apple to snatch up his Beats Electronics brand.
Apple will reportedly buy Beats for a whopping $3.2 BILLION — and since Dre and Interscope honcho Jimmy Iovine created the brand … it’s a safe bet they will walk away with a huge chunk of that cash.
Battle rap takes it up a notch with probably it’s most high profile battle yet, brought to you by battle rap and platinum Hip hop superstar Eminem and Shady Records. This should be fun.
Main Event: Joe Budden vs Hollow Da Don, Loaded Lux vs Murda Mook
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Fif drops the video to his new street banger “Hold On”.
Sway finally has the answers and drops some great insight as to what he thinks could be a great situation for 50 Cent taking control of his career and truly being his own boss. Now ironically when will Sway due the same thing and leave MTV and build his own brand, he could definitely do it and has probably the best relationships in the music industry. Your move Sway.