When news first broke of Dr. Dre planning to enter the headphones market, there were some people who thought this was a strange move. While there was no doubt that Dre has proved himself to be hugely talented behind the production desk, not everyone was convinced that he would be able to deliver headphones that matched the market leaders. Promotion and marketing played a role in the success of Beats but it was very obvious that these were headphones that delivered a high quality of sound, exactly the sort of sound a musical perfectionist would be looking for.
The success of Beats created a platform for rapid expansion and the firm ventured out into a number of other areas, including speakers and even a music subscription service. Beats Music launched earlier in 2014 to much acclaim and fanfare, with some industry experts wondering whether it would be a rival to take on and eventually overtake iTunes and their radio service. In the end, it seems as though we’ll never get round to finding out because Apple is in line to purchase Beats Electronics for a sum of money that is over $3bn.
A number of industry profilers, including Gizmodo, believe that the overall cost to Apple to buy Beats Electronics will be $3.2 billion. With Dr and Jimmy Iovine being the owners of the firm, it is reported that Dr Dre will pick up more than one billion dollars from the sale. Anyone who wrote off Beats at the start will be eating a great deal of humble pie around about this time. You can also bet that after this no one will forget about Dre or write him off at the business table.
“The first billionaire in Hip Hop right here from the motherfucking West Coast,” Dre says in a clip filmed by singer-actor Tyrese.
The deal is nearing completion
The deal is yet to be officially concluded so there is still time for the deal to fall apart but if the final negotiations are concluded successfully, this will be a massive deal, not just for Dre but for Apple as well. This purchase will go down as being the largest acquisition that Apple has ever pushed through. This stands in stark contrast to the policy at the company employed by Steve Jobs but since his passing in 2011, the firm has taken a number of decisions and moves that stood against the policies implemented by Jobs. However if this deal is to go through this will make Dr Dre the first hip hop billionaire, followed closely by P.Diddy.
While the sums of money and the potential new products and services on offer will form the basis for much of the discussion about the deal, there will inevitably be focus on what Dr Dre is going to do next. While Dre has shown that he is not all about the money, he could have retired long ago if that was the case, receiving this huge sum of money in one instant will cause anyone to question their plans for the next few years. Dre has previously indicated he was going to take a break from music to focus on Beats, albeit he bounced back at the 2012 Coachella Music festival. So it will be interesting to see if he remains involved with the firm or if he moves onto new ventures.