Apple is purchasing Beats Electronics for $3.2 billion. Dr.Dre and co-owner Jimmy Lovine decided to sell to Apple and have also agreed to Apple’s terms. This means that Apple will also own Beats Music and the Beats Electronics music subscription service launched this year that provides similar services to Apple’s iTunes Radio.
Dre recently came in #2 on Forbes’ most recent list of hip hop’s wealthiest artists — with a net worth of $550 million … while Diddy was #1 at $700 million. This Apple deal is said to make Dre the very first hip hop artist to become a billionaire.
This deal would have unlikely been approved under Steve Jobs, the company’s co-founder, who died in 2011. He did not agree with such deals. CNBC said Steve “was reluctant to pursue high-profile acquisitions.” This agreement will be the first of its kind in Apple history.