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Apple finally confirms Beats acquisition for $3 billion

Apple confirmed it will purchase Beats for $3 billion, $2.6 billion in cash and $400 million in stock, as the Beats brand will continue to operate.

Published Wed, May 28 2014 4:26 PM CDT   |   Updated Sat, Aug 8 2020 10:29 AM CDT

Apple has finally confirmed it will purchase the popular Beats Electronics brand, which specializes in headphones, earbuds, and an online music service. Rapper Dr. Dre and music industry veteran Jimmy Iovine will join Apple working under Eddy Cue, head of Apple's Internet services.

Apple finally confirms Beats acquisition for $3 billion | TweakTown.com

The deal was originally expected to close at $3.2 billion, though will be slightly cheaper than originally expected. Apple will pay $2.6 billion cash and offer $400 million in stock, with deal approval expected later in 2014. However, Apple officials were reportedly angry when a drunken Dr. Dre, out celebrating the deal, boasted about becoming "the first billionaire in hip-hop," which is one of the reasons it took so long for acquisition confirmation.

Meanwhile, iTunes will operate alongside the Beats Music offering, with Apple pledging to operate both services independently.

NEWS SOURCE:slate.com

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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