Dr. Dre has become Hip Hop’s first billionaire. According to The New York Times, Apple Inc. announced to the public it’s largest acquisition in the company’s history, a $3.2 billion dollar purchase of Dr. Dre and Jimmy Iovine’s, Beats Electronics headphones. Forbes Magazine recently listed the top five Hip Hop moguls who had the highest net worths, and Dr. Dre came in at number two just under Sean Combs, at an estimated $550 million dollar net worth. This would only add to his fortune as he is slated to make 1 billion dollars out of the deal.
In “Hip Hop’s Purchasing Power” we detail how rappers may have millions but not enough to buy a team like the LA Clippers. Since Dre has publicly expressed interest in the Clippers he may be in a position to become an owner if this deal goes through, and then some.
Even before the deal was finalized there was reportedly a small hiccup on Dr. Dre’s part that complicated matters. Singer-songwriter, Tyrese, posted a video on YouTube of him and Dre at a party bragging about being the first Hip-Hop billionaire. Going public with that kind of information before Apple confirmed that the dotted lines were signed could have possibly got into some legal issues, but that incident seems to have been taken with a grain of salt.
Apple’s CEO, Tim Cook praises Dr. Dre and Jimmy Iovine for their expertise, but many speculators wonder why the richest tech company in the world, and the forerunners of pioneering digital music, would purchase Beats Electronics instead of expanding in-house.
Now that Dre and Iovine have become partners with Apple, Inc. only time will tell how this business acquisition will work out. Apple is now competing with companies like Spotify and Pandora that stream music for free. The New York Times reported that Cook said of Dre and Iovine; “They’re going to be coming up with ways of features that blow your mind,” he said, “and products you haven’t thought of yet, and seeing around the next corner to articulate the way to take music to an even higher level than it is now.”
© Copyright Eddie Savoy Bailey III, 2014
Written by: Eddie Bailey of The Savoy Media Group