Get All Access for $5/mo

Apple Confirms $3 Billion Deal for Beats, Its Largest Acquisition Yet Beats Electronics celebrity co-founders Dr. Dre and Jimmy Iovine will join the tech giant's ranks.

By Lauren Covello

Opinions expressed by Entrepreneur contributors are their own.

It's official: Apple is buying Beats.

Ending weeks of speculation, Apple announced today it will purchase headphone maker Beats Electronics and its subscription service Beats Music in a deal worth $3 billion.

The deal is the largest known acquisition made by Apple, comprising $2.6 billion in cash and $400 million in Apple stock that will vest over time. The transaction is expected to close before the end of September.

As part of the deal, Beats co-founders and music industry veterans Dr. Dre and Jimmy Iovine will join the consumer tech giant's ranks.

Related: Music Mogul and Entrepreneur Dr. Dre: I'm the 'First Billionaire in Hip Hop'

Iovine said the move is a natural fit for the company. "I've always known in my heart that Beats belonged with Apple," he said in a statement. "The idea when we started the company was inspired by Apple's unmatched ability to marry culture and technology."

Founded in 2008, Beats was once majority owned by phone maker HTC. HTC sold nearly half of its stake in July 2012 for about $150 million, and the remainder for $265 million last fall. The Santa Monica, Calif.-based company also received a $500 million investment from private-equity firm Carlyle Group in September.

Related: Here's How to Quit the iPhone and Switch to an Android

Lauren Covello

Former Managing Editor

Lauren Covello is the former managing editor of Entrepreneur.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Science & Technology

Why We Shouldn't Fear AI in Education (and How to Use It Effectively)

Facing resistance to new technologies in the educational process is nothing new, and AI is no exception. Yet, this powerful tool is set to overcome these challenges and revolutionize education, preparing students and professionals for a future of unparalleled efficiency and personalized learning.

Business News

Apple's AI Has a Catch — And It Could Help Boost Sales

Not every iPhone owner will get to use the new Apple Intelligence.

Business News

Elon Musk Threatens to Ban Employees from Using Apple Products, Says Will Lock Devices in 'Cages'

The Tesla founder sounded off on X following Apple's 2024 Worldwide Developer Conference on Monday.

Business News

Y Combinator Helped Launch Reddit, Airbnb and Dropbox. Here's What I Learned From Its Free Startup School.

The famed startup accelerator offers a free course on building a business — and answers five pressing questions for founders.

Business Culture

You'll Always Have Anxious Employees if You Don't Follow These 4 Leadership Tactics

Creating a thriving workplace environment hinges on the commitment of company leaders to nurture and inspire their teams.