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Forbes: Dr. Dre's Beats Electronics worth $3.2 billion

An apple a day keeps the doctor away...... unless that doctor's name is Dre.

iBeats, anyone?
Photo by Noam Galai

It has been recently rumored that Beats Electronics, the company that was co-founded by the Compton hip-hop legend and Interscope-Geffen-A&M Records head Jimmy Iovine, is set to be acquired for $3 billion by pioneering tech behemoth Apple, Inc. of Cuppertino, Calif.

If in fact the creators of the iPhone, the Macintosh operating system and all of the computers that run it, iPad, iPod, and iTunes, among other industry-leading technologies, is about to add the Santa Monica-based headphone manufacturer, which replaced the MOG Music Service (ending on May 31) with its own creation, Beats Music in January, there are many possibilities of what will follow the transaction's completion:

  • Beats audio technology could be exclusive to Apple products, thus ending Beats' agreement with HP.
  • Beats by Dre headphones sales will go up if all is confirmed.
  • Beats Music could be replaced with iTunes just as quickly as it was created to replace MOG.
  • Dre and Iovine could be Apple executives.

But, according to Forbes Magazine and numerous other sources, Dre (born Andre Romelle Young in 1965), Iovine and the investor that bought half the firm in 2013, Carlyle Group, could do more than see their baby placed in good hands - they could pocket about $3.2 billion in total. Forbes' Hugh McIntyre weighed in on the rumored offer, which began circulating on or around May 9, on May 16:

"About a week ago, rumors began to surface that Apple was looking to acquire headphones maker Beats By Dr. Dre, and almost immediately the music and tech industries collectively lost their minds. The deal, if there even is one, is massive."

Dre began his career as a member of The World Class Wrecking Crew when the group scored a hit called "Turn Off the Lights", then became a founding member and one of the main producer of the controversial L.A.-based hip-hop collective N.W.A. After four years in that group, he founded Death Row Records in 1992 (with Marion "Suge" Knight) and discovered Snoop Dogg, Tha Dogg Pound (Kurupt and Daz Dillinger), and The Lady of Rage among others and signed 2Pac, who scored many hits before and after the deal. However, the relationship between Dre and Knight soured soon afterwards, and in 1995 the MC-producer founded Aftermath Entertainment, which spawned highly successful talent such as Eminem, 50 Cent, and Kendrick Lamar.

Iovine founded Interscope Records in 1989 with Ted Field of Interscope Communications and Atlantic Records (then part of Warner Communications, one of the company that became Time Warner). Eventually, the label became a part of Polygram, which later was absorbed into Universal Music Group, now a part of France's Vivendi. Interscope distributes Aftermath releases, among others.

Apple Inc. was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. Its rivals include the likes of longtime foe Microsoft (makers of the Windows OS and the Xbox family of video game consoles), Korea's Samsung Electronics, Finland's Nokia (until Microsoft buys its mobile division), and Eurpoean-based music streaming service Spotify.

Nothing has been formally announced about the deal, but the buzz is huge.

Columbia, SC, will this make you be proud or embarrassed if you own Beats headphones, or will you a little more apprehensive towards them or wishing more for them if not?

The doctor is in...... maybe. If so, prepare for iBeats.

'Nuff said.

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