The Financial Times is reporting that Apple is in talks to purchase Beats Headphones and Music for an estimated $3.2 billion. The news started breaking last night, and it looks like the deal could go through as early as next week.
This would be Apple's largest acquisition ever, and would make Dr. Dre the first hip hop billionaire ever (at least according to a social media video posted last night).
MAGNETIC RECOMMENDS:11 People You Don't Want To Meet At A Rave
Some are questioning the logic of the purchase, slamming the sound quality of Beats Headphones and the ability of Beats Music, even combined with iTunes Radio, to overtake music streaming service leaders Pandora and Spotify.
Om Malik, veteran tech writer turned venture-capital investor went on deadmau5 style twitter rant when the news broke:
Apple founder and CEO Steve Jobs was close to Jimmy Iovine, a Beats Founder and music industry executive (amongst other things). In an interview, Iovine said:
So I met [Jobs] and we hit it off right away. We were really close... We did some great marketing stuff together: 50 Cent, Bono, Jagger, stuff for the iPod — we did a lot of stuff together. But I was always trying to push Steve into subscription. And he wasn't keen on it right away."
Regardless of how tentative the deal might be, it looks like the celebration has already begun, as Tyrese posted (and then removed) an video with "West Compton!" and "South Central!" being shouted, just before Dr. Dre says, "The first billionaire in hip-hop, right motherfucking here from the West Coast. Believe it."
"How did I end up in the studio with Dr Dre ON THE night his deal went public that he did with Apple 3.2 BILLION!!!!! The BEATS HEADPHONES JUST CHANGED HIP HOP!!!!!!"