Apple Confirms Acquisition Of Dr. Dre, Jimmy Iovine's Beats Music & Beats Electronics For $3 Billion
Beats Electronics and Beats Music reportedly sell for $200 million less due to lack of Beats Music subscribers.
Weeks after it was revealed that Apple was reportedly purchasing Jimmy Iovine and Dr. Dre’s Beats Electronics, those reports have been confirmed in a press release, which was posted on the Beats Music blog today (May 28).
“I’ve always known in my heart that Beats belonged with Apple,” Jimmy Iovine said in a statement. “The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”
Earlier this month, it was reported that Apple would be purchasing Beats Electronics and Beats Music for $3.2 billion, but that price has been trimmed down to $3 billion.
According to the New York Post, the $200 million decrease in price stems from the low number of Beats Music subscribers. The Post reports that the subscription based streaming music service has only 111,000 subscribers, a number that is far from the 10 million paying customers Spotify has.
“Apple hadn’t even begun its due diligence process when news of the number came out,” a source said to the New York Post.
Despite Beats Electronics and Beats Music selling for $200 million less, Dr. Dre, who helped found Beats Electronics in 2006, still stands to make hundreds of millions from the deal.
Below is a tweet from Apple CEO Tim Cook about the deal.