Last updated: December 28, 2014



Apple buys Beats in $3b deal that sees Dr Dre and Jimmy Iovine join Apple board

Core value ... Apple is buying Beats for $3 billion.

Core value ... Apple is buying Beats for $3 billion. Source: Supplied

THE deal is official: Apple is buying Beats for $3 billion.

The rumoured deal was, again, rumoured to be in doubt after video emerged of Beat’s co-founder Dr Dre boasting of being rappers first billionaire.

But Apple CEO Tim Cook today announced it had bought the maker of the popular Beats headphones and the (not so popular) Beats Music streaming service for a purchase price of US$2.6 billion with a further US$400 million in stock.

“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Cook said in a statement. “That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.”

Both Beats co-founders, Dr Dre and Jimmy Iovine, will join Apple as part of the deal joining the Apple board.

“I’ve always known in my heart that Beats belonged with Apple,” said Iovine said in the statement.


Since news of the deal was leaked, tech analysts have presented a collection of theories as to why Apple, which normally only buys small companies in small deals, dug so deep in its pockets for this deal.

One theory is that Apple feels it needs a streaming service to support iTunes. Another theory is that it wants the cool factor of the headphone brand, and the marketing brain of Iovine.

Innovations that make life easier

Nanobots will change everything


The phones of the future will blow your mind


How to turn your house into a smarthome


What it will be like living in 2024


Why you should be worried about facial recognition


Kids confused by 1970s computer
