Apple Inc. has completed its acquisition of Beats Electronics, the company that Dr. Dre and Jimmy Iovine founded in 2006.
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Apple Inc. (AAPL) announced on May 28, 2014 that it had agreed to buy Beats Electronics LLC for $3 billion. The deal, which was completed on August 1, 2014, helped Apple bolster its music offerings and expand its presence in the premium headphone market.
Beats was founded in 2006 by music producer Dr. Dre and Interscope Geffen A&M Records chairman Jimmy Iovine. The company’s flagship product, the Beats by Dr. Dre line of headphones, quickly gained popularity among celebrities and everyday consumers alike.
In addition to headphones, Beats also offers a subscription-based streaming music service called Beats Music. The service competes with similar offerings from Spotify, Rdio, and Google Play Music All Access.
The History of Beats
Beats by Dre was founded in 2006 by Dr. Dre and Interscope Chairman Jimmy Iovine. The company originally sold only headphones, but eventually expanded to other products, such as speakers and streaming services. In 2014, Apple bought Beats for $3 billion. This article will explore the history of Beats and how it came to be acquired by Apple.
Beats Electronics is an American consumer electronics company founded in 2008 by Dr. Dre and Jimmy Iovine. The company produces audio products under the Beats by Dr. Dre, Beats solo2 and urBeats by Dr.Dre brands. Headphones designed for professional musicians and DJs are under the brand name Beats Pro. The company was acquired by Apple, Inc. in May 2014 for US $3 billion in cash and stock.
The origins of Beats Electronics are linked to the popularity of hip hop and R&B music in the early 2000s. Monster Cable Products, Inc. introduced a line of headphones called the “Beats by Dr. Dre” in 2008. In 2009, Iovine and Dre partnered with HTC, which bought a 51% majority stake in the company for $309 million. Monster therefore retained a 49% stake; both companies continued to operate independently with Iovine continuing to run Interscope-Geffen-A&M Records as well as Beats, while Dre focused on producing songs and acting.
The brand’s first product was the “Beats by Dr. Dre” headphone line, which was launched in 2008. According to an article published on CNET on July 28, 2014, HTC sold its stake back to Beats for $265 million, making it sound as if Monster no longer had any ownership stake whatsoever in Beats; however, numerous other sources report that Monster continues to own 25% of the shares (and thus continued to receive royalties), with Iovine and Dre owning the rest.
In 2012, after its product had become popular among celebrities and young adults, Beats started selling earphones via Hewlett-Packard (HP). HP then sold back its stake to Beats in 2013 for about $500 million. The same year, Iovine also partnered with Mariah Carey on her The Elusive Chanteuse Show concert events, Chief Executive Officer Luke Wood joined from Nike Inc.,[26 say they have streaming service daisuke ikegami owns 25 percent becomes ceo of looks like conrad tate including access services similar announcement.] In January 2014, it was reported that Apple was in talks to acquire Beats Electronics for $3.2 billion;[28 Upon confirmation of the acquisition later that month,Ikegami relinquished his position as CEO but continued to own 12 percent interest still today his daughter is number two at the comapny .[29 New Yorkers were skeptical when only acquiring daisuke’s 25 percent . many other sources report that Monster still owns 25% of ]
Beats Music was a music streaming service that was acquired by Apple Inc. in May 2014. The service was launched on January 21, 2014, and had over 111 million subscribers as of November 2019. The service operated in the United States, Australia, New Zealand, and Canada.
The Beats Music streaming service was developed by Beats Electronics, which was founded in 2008 by music producer and rapper Dr. Dre and Interscope Records co-founder Jimmy Iovine. The company was acquired by Apple Inc. for $3 billion in May 2014.
Beats Music was discontinued on November 30, 2015, and replaced apple music
On May 28th, 2014, Apple Inc. announced it had agreed to buy Beats Electronics, the headphone and music streaming company started by Dr. Dre and Interscope Chairman Jimmy Iovine, for $3 billion. The deal was finalized on August 1st, 2014.
When did Apple buy Beats?
Apple Inc. (AAPL) announced on May 28, 2014, that it had reached a deal to buy Beats Electronics, the company co-founded by music producer Dr. Dre and Interscope Geffen A&M Chairman Jimmy Iovine, for $3 billion. The acquisition was completed on August 1, 2014.
What was the purchase price?
Apple Inc. completed its acquisition of Beats Electronics, the headphone and music streaming company founded by Dr. Dre and Jimmy Iovine, for $3 billion on August 1, 2014.
What does this mean for Apple?
The acquisition of Beats gives Apple a valuable foothold in the premium headphone market and potentially the streaming music business. Beats headphones are some of the most popular on the market, and the company’s Beats Music streaming service has drawn favorable reviews.
The deal also reunites Apple with one of its former executives, Jimmy Iovine, who helped develop the iPod and iTunes. Iovine left Apple in 2008 start Beats with Dr. Dre.
The acquisition is Apple’s largest since it bought NeXT Computer for $429 million in 1997. That purchase brought Apple co-steve jobs back to the company he started in his garage in 1976.
In May 2014, Apple Inc. (AAPL) announced it would buy headphone and music streaming company Beats Electronics for $3 billion. The purchase was completed on August 1, 2014.