Apple Set To Purchase Beats Electronics for $3.2 Billion, Dr. Dre Could Earn Up To $1 Billion
While reports are not solidified, Apple is set to purchase the leader in the U.S. headphone market for $3.2 billion, their biggest acquisitions since Steve Jobs died in 2011. The deal would include Apple claiming ownership of Beats Electronic music subscription service, Beats Music, a competitor for Apple’s iTunes Radio.
Last year, streaming music subscriptions increased as digital downloads experienced their first annual decrease since Apple’s iTunes arrived in 2003.
In August 2011, manufacturer HTC purchased 50.1% of Beats Electronics for $300 million. In less than three years later, Beats Electronics purchased the shares back for $415 million. Dr. Dre accumulated $100 million in pretax earnings from the 2011 sale and could make upwards of $1 billion from the sale with Apple.
Dr. Dre was second on Forbes’ Cash King List for highest net worth among Hip Hop celebrities this year.