We reported nearly 3 weeks ago that Apple was looking to purchase Beats By Dre, and today we have confirmation. That’s right, confirmation has come from reports over at CNBC and it appears that Apple is putting forth $3 billion to make the deal happen.
The actual deal seems to be split up just slightly. $400 million in equity and the other $2.6 billion will be in cold hard cash. It’s being reported that the deal is expected to close in the fiscal fourth quarter.
Reports are stating that Dr. Dre and Jimmy Iovine will be joining Apple but it’s yet to be stated what exactly they will be doing for the company. What it definitely does for Apple is give them two fairly large names that are quite publicly known to be spreading the word of their products.
With the purchase of the Beats By Dre Headphones, also comes the Beats streaming music service, which is something Apple apparently is very interested in so they can compete with folks like Spotify and others. You can see what Tim Cook had to say in a short quote below:
This story is still developing with more and more details, and as we get them we will certainly try to keep you updated on exactly what all is happening as far as what roles Jimmy Iovine and Dr. Dre may play once they officially join the Apple team and are working with and for Apple’s CEO Tim Cook.
Until then, if you have any details please let us know in the comments below as we’d certainly love to hear as much as possible about this developing story.