UPDATE: Dr Dre has apparently confirmed via a YouTube video that he is indeed selling Beats to Apple. See the video at the bottom of the article.
Beats By Dre may no longer be “By Dre.”
Founded by Dr. Dre and producer/major label exec Jimmy Iovine in 2008, Beats has become one of the most recognized and popular headphone brands in the world. While $3.2 billion may seem like a lot of money for just a headphone company, that’s not all that Apple is getting out of this deal. Beats would also be giving up its recently launched music-streaming service Beats Music, an area that Apple has been struggling in since the launch of services like Spotify and Pandora.
Until now, Apple has relied mostly on its own innovation and creation to remain ahead in the tech world. While companies like Google and Facebook are constantly buying up smaller companies for exorbitant amounts of money (i.e. Instagram, Oculus, Nest), Apple has remained relatively standoffish in the acquisition department. So for the company to shell out $3.2 billion for Beats (an estimated $1.2 billion above the company’s estimated worth), Apple must really see some potential.
Hopefully what this really means is customers getting a new pair of Beats headphones with the purchase of a new Apple product, as opposed to the flimsy earbuds that are inevitably lost within a week of purchase.