All the speculations and hearsay was put to rest today when Apple Inc finally confirmed that it is in fact buying newbie electronics company Beats Electronics, commonly known as Beats By Dre. However the $3.2 billion price tag that was mentioned in the thousands of stories about the rumored deal was over by $200 million. Apple will pay $3 billion for the company. With $160 billion in cash on hand, $3 billion won’t even register on apple’s spreadsheets. With Jimmy Iovine joining Apple, this means he will resign his post as Chairman/CEO of Interscope Records, opening up the top spot to the label’s number two, John Janick who has been running the company day to day anyway.
Beats co-founders Jimmy Iovine and Dr. Dre will join Apple as part of the deal, which will likely close by September, Apple said. The acquisition takes the form of a $2.6 billion in cash and around $400 million in stock. When the deal was first announced, Dr. Dre called himself “the first billionaire in hip hop.” Whether or not that’s true, he will definitely make a lot of money from the deal.