In this article: apple, to apologize music, applebeatsfiveyears, av, beats, win by dre, business, entertainment, gadgetry, gadgets, gear, headphones, music streaming, streaming
"Oh shit, the Forbes list just changed," Tyrese Gibson proclaimed in a 2014 facebook video.

You are watching: How much did apple pay dr dre for beats

"The an initial billionaire in hip-hop, right here from the motherfucking West Coast," Dr. Dre chimed in.


By this allude in at an early stage May, the rumors were all however confirmed. Financial times may have been the first to report Apple"s acquisition of Beats electronics was a done deal, but Bloomberg, The new York Times and also The wall Street newspaper were also quite sure pens had actually met paper. Even though the rumblings started a month earlier, both service providers remained silent. That is, till the bombastic Facebook article that was just live because that an (understandably) quick time.


It"s one thing to comment on sensitive organization info in a celebratory social post, but it"s one more thing completely to basically announce the deal was done. It was objectively a crazy thing to watch unfold. The official announcement wouldn"t come until may 28th, when Apple put a bow top top its $3 billion acquisition with a push release and photo. The price sign still to represent Apple"s many expensive acquisition.

Perhaps the ideal account of those events originates from Beats co-founder Jimmy Iovine. He discovered out around the video clip when Sean Combs (P. Diddy, Puff Daddy, Diddy, Puffy) dubbed him, yelling, around 2AM.

"We had actually gone for like six weeks without it leaking," Iovine explained. "This thing has leaked, this point is loud." He stated he warned Dre "don"t move" that weekend. And also ... Welp.

You deserve to hear the story indigenous Iovine on the first episode that HBO"s The Defiant Ones, however his next isn"t any kind of less insane. "I had actually been wanting to work with Apple, at that point, it"s most likely 10 years," Iovine claimed in one interview for the show. "Sure, I believed the deal could blow."

Luckily for him, Dr. Dre and also Apple, the didn"t.

*

Apple


Jimmy Iovine is just as essential to the win story together Dr. Dre. The Interscope documents co-founder began the agency alongside the rapper/producer in 2006. Win initially concentrated on headphones and speakers, and in 2012 the agency would take 64% of the $100-and-up headphone market. But as the sector inched its method into the streaming age, it would certainly follow in at an early stage 2014 v Beats Music.

Iovine"s suffer as a producer, brand executive and also businessman would collection the tone because that Beats" success. Heck, he"s worked with Bruce Springsteen, Tom Petty, Patti Smith, Stevie Nicks (whom he also dated), U2 and also more. He"s unquestionably one of the many notable music producer of the 1980s. That resume was likewise a crucial component the the apple deal, as Iovine (and Dr. Dre) would come to be an employee, functioning alongside Vice chairman of solutions Eddy Cue and senior Vice chairman Phil Schiller on the hardware side. A streaming service was exactly what Apple required to complete with the likes the Spotify, Google, Rdio (RIP) and also others.


Let"s ago up a bit. To win Music wasn"t entirely developed from the floor up. The agency bought streaming service MOG in 2012 and, prior to shuttering it 2 years later, reinvented the pieces right into its very own subscription option. MOG"s vital features included a comfortable playlist generator and Pandora-like artist radio stations. Beats would put a most stock in curation as well, mostly approximately emotion and an individual preferences. It additionally had help from creative powerhouses like Trent Reznor, who ongoing to work-related with Apple adhering to the acquisition. The an initial time girlfriend fired increase Beats Music, you to be met with a tap-driven questionnaire the learned her tastes. The business didn"t exist for really long ~ above its own, together Apple would buy beats just four months after it launched, and before the finish of 2015, to win Music to be gone for good.

*

Hours after the deal was official, Cue and Iovine showed up at Recode"s password Conference to discuss the day"s events. The to apologize VP made it clear he feeling Beats Music to be the "first music organization done right," referring mainly to the focus on curation and playlists.

"It was a no-brainer for us," Cue described at the event.

Apple had actually iTunes and its massive magazine of digital music because that purchase, however the iPod generation was coming to an end. It necessary an on-demand subscription company to keep up v the industry"s pivot, and rather than build its own, it made decision to to buy one.

"Music is such crucial part of all of our lives and holds a special ar within our hearts at Apple," Tim cook explained when Apple to buy Beats. "That"s why we have kept investing in music and also are bringing with each other these extraordinary groups so we can proceed to create the most innovative music products and services in the world."

Indeed, apologize Music would launch in June 2015, and amass 10 million subscribers by January 2016 -- 20 million paid users that December. Less than two years later, and after some redesigns, that would double its tally to 40 million. Sure, the firm hasn"t captured Spotify globally, and also it might never it is in able to. However in the US, Apple reportedly has much more paying individuals than its greatest rival.

On the streaming side alone, the investment has actually paid off. Apple has actually cemented itself as a key player in the many popular means people currently listen come music.

*

Beats has relied ~ above the marketing power of celebrities, consisting of NBA superstar LeBron James

Andrew D. Bernstein via Getty Images


Of course, Beats has that massive headphone and speaker service -- it"s not all about turning Beats Music into Apple"s very own service. After ~ joining Apple, the firm would release new headphones, however the fruits of the relationship didn"t flower until loss 2016. As component of the iphone 7 reveal, to win announced that it had actually three brand-new headphone choices in the works. All three would attribute the W1 chip that powered Apple"s own true wireless AirPods. The Powerbeats 3, win Solo3 Wireless and also the eventually delayed BeatsX would pack in quick-pairing features, enhanced battery life and Fast Fuel fast charging. Apple had benefited native Beats" streaming service, and also now win headphones were benefiting native Apple"s design smarts. The firm would monitor up a year later with a fourth model the leveraged the power of the W1 chip: the noise-canceling Studio3 Wireless.


Beats headphones have been (rightfully) criticized for too much bass, and for their cheaper construct quality the relied much more on brand acknowledgment than good design. In current years though, that"s changed. The tuning top top the Studio3 wireless, specifically, stood the end to me as a brand-new sound profile for Beats. There was still lot of of bass but it to be no much longer overpowering, and thus the headphones to be much much more enjoyable come use.

*

Beats through Dre

"We thought we to be pretty great until we obtained to Apple, and also then us started learning what "good" yes, really was," Beats chairman Luke timber told TechRadar last month. "Apple had actually so much incredible discipline and rigor around product quality." He would go top top to explain that in the at an early stage days that Beats, "no one was making headphone assets to articulate the bottom end." However, the agency didn"t overlook its critics, and Wood listed that the bass-heavy reputation was "absolutely taken right into consideration" as soon as the agency was building its first true wireless model: the Powerbeats Pro.

In a lot of ways, Powerbeats pro epitomizes just how being part of apple has influenced Beats products. The W1 chip has been changed by the H1 uncovered in the latest AirPods. In addition to rapid pairing, rapid charging and more-reliable connectivity, the H1 chip permits Siri come be constantly listening -- there is no you having actually to push a button to summon it. The sound top quality on the Powerbeats pro is also much improved: far better tuned to store plenty that bass, while no sacrificing the detail from the mids and highs. It"s hands-down the many well-rounded, best-sounding set of win headphones.

Overall, Beats products have improved over the past five years, and also Apple deserve to take most of the credit. The course, better Beats headphones now affect its own bottom line and will do so because that the foreseeable future.

*

Apple"s Phil Schiller discusses to apologize Music on the brand-new HomePod clever speaker in ~ WWDC 2017

Chris Velazco/audioeditorfree.com


In 5 years, Apple recorded Spotify in the US, and also its 40 million subscribers (likely way more at this point), room paying turn off the invest in Beats. More important, the firm is a significant player in music streaming, the tool that accounts for nearly fifty percent of global revenue industrywide. Sure, win headphones are better, yet Apple was primarily interested in beats Music, which that has successfully transformed into its own service.

See more: Ending Life Support: How Long Can You Live On Life Support ?


Working ~ above its own, this could"ve taken years to build, and even then, it may not have actually been as an excellent as what it has actually done through the assist of Iovine, Dr. Dre, Reznor and also others. Apple to buy a company, commandeered its assets and retained that is talent to save the documents spinning as it"s done many times and also will continue to do. 5 years later, business is booming, and that"s business as normal in Cupertino.

Images: apple (Apple Music and also group photo); win by Dre (Beats Music); Andrew D. Bernstein via Getty images (LeBron James); beats by Dre (Powerbeats Pro)