Apple and Beats Electronics Deal Is Officially Done

Apple and Beats Electronics officially closed the deal for a buyout of the headphones and streaming music company, coming to a final agreement of $3 billion. It's $200 million short of the initial price that was leaked two weeks ago.

About $2.6 billion will be handed over to Beats now, with the rest coming over time. It's thought that Dr. Dre will see about $750 million of this, and Jimmy Iovine will get a few hundred million as well — both will join Apple as executives.

Apple said that they won't be combining Beats Music with iTunes, and will run it separately. “Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Tim Cook, Apple’s CEO.
“That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.”

Jimmy Iovine And Dr.Dre Sells Beats Electronics And Leaves Interscope Records To Join Apple

Interscope's Jimmy Iovine announced that he was stepping down from the label. Iovine has served as Chairman and CEO of Interscope for the past 25 years, easily making him the most successful label head in history. John Janick is set to take over Iovine's spot at Interscope, while Jimmy will head over to Apple in the deal.

The report states that even before it was rumored that Jimmy was leaving for Apple, Janick was running the label. Jimmy made the following statement below about his departure and his successor:

“John Janick has exactly what it takes to lead Interscope Geffen A&M: he started his own label, he understands the art of making records and the unique dynamic between a record label and artist, as well as the enormous responsibility that comes with representing one of the greatest artist rosters ever assembled."

Jimmy will officially join Apple once their acquisition of BeatsByDre closes later this summer.
(BillBoard)