Despite rumors of the Beats/Apple deal being canned due to Dr. Dre’s celebratory video with Tyrese that exploded on the web following the announcement of the major deal, Apple not only confirmed the deal to still be underway, but also released just how much they are buying the franchise for.
CNN confirmed Wednesday evening that Apple (which is worth $159 billion as of last year) will initially buy the headphone/music streaming company for $2.6 billion, and subsequently pay $400 million over a period of time. This of course means that overall, Apple will be purchasing Beats for $3 BILLION DOLLARS (not too far off from the original estimate of 3.2 billion). The deal is expected to be finalized by the end of the Summer or early Fall.
Additionally, as part of this deal, Jimmy Iovine will step down as Chairman & CEO of Interscope Records, with Interscope President & Chief Operating Officer John Janick stepping up to the plate to fill Jimmy I’s shoes. However, according to a Billboard report, sources within Universal Music Groups (Interscope’s parent company) have claimed that Janick had more or less been running the label for the last month, as Iovine seemed to have been losing interest.