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Apple Acquires Dr. Dre’s Beats Electronics, Jimmy Iovine Leaves Interscope Records

Dr. Dre Jimmy Iovine
Michael Kovac, Getty Images

It’s official! Apple has announced that it was acquiring Beats Electronics, the popular headphones and music brand, for $3 billion. On Wednesday (May 28), Apple and Beats executives confirmed the partnership and said the would work together to give consumers more options when it comes to listening to music.

The acquisition will also bring Dr. Dre and Jimmy Iovine, who founded Beats Electronics, to work at Apple in the Internet services department.

In an interview with the New York Times, Apple’s CEO Timothy D. Cook, was excited to have two veteran record executives join his company.

“These guys are really unique,” he said. “It’s like finding the precise grain of sand on the beach. They’re rare and very hard to find.”

Following Apple’s confirmation, Iovine made his own announcement that he’s leaving Interscope Records after 25 years, easily making him the most successful music honcho in the business. John Janick has been appointed to take over Iovine’s spot.

As for the Apple-Beats deal, the tech company is paying with $2.6 billion in cash and $400 million in stock.

As we previously reported, the Apple-Beats puts Dr. Dre just shy of becoming hip-hop’s first billionaire. But with an estimated $800 million the ‘Chronic’ producer is expected to pocket from the deal, he will leapfrog over Diddy as Hip-Hop’s Wealthiest Rap Mogul.

Mr. Cook said that Dr. Dre and Jimmy Iovine will be working on a new set of music products but wouldn’t disclosed what they are or when they would hit the marketplace.

“They’re going to be coming up with ways of features that blow your mind,” he said, “and products you haven’t thought of yet, and seeing around the next corner to articulate the way to take music to an even higher level than it is now.”

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