Dr. Dre to become rap’s first billionaire with $3.2 billion Apple-Beats Electronics deal

The deal would make Dre hip hop’s wealthiest roller.

The deal would make Dre hip hop’s wealthiest roller.

Straight outta Compton — Dr. Dre is on the verge of becoming the rap world’s first billionaire.The music mogul all but confirmed Friday that Apple was buying Beats Electronics, the company he co-owns that makes the good doctor’s wildly popular Beats by Dr. Dre headphones, for $3.2 billion.“First billionaire in hip-hop, right here on the motherf—–g West Coast,” Dre is heard saying in a NSFW video that appeared on R&B singer Tyrese Gibson’s Facebook page.

The deal with the iPhone-maker would make the 49-year-old co-founder of Death Row Records hip hop’s wealthiest roller.

Dre is seen with his wife, Nicole Threatt.

Dre is seen with his wife, Nicole Threatt

Forbes calculated that after capital gains taxes, the deal would actually leave Dre about $200 million shy of being a billionaire. And his new net worth of around $800 million would not be enough to land him a spot on the Forbes 400.

But it would catapult Dre’s worth ahead of Puff Daddy, who currently tops the magazine’s rap-to-riches list with a net worth of $700 million. Dre, whose real name is Andre Romelle Young, is second at $550 million.

In the Facebook video posted on Friday, Gibson served notice that “the Forbes list just changed.”

The  deal would be the biggest acquisition in Apple’s history and would  also include the new Beats Music streaming service.

The deal would be the biggest acquisition in Apple’s history and would also include the new Beats Music streaming service.

The Apple deal — the biggest acquisition in the generally conservative company’s history — would also include the new Beats Music streaming service, which Dre and business partner Jimmy Iovine, the legendary music producer, introduced in January to compete with Pandora and Spotify.

It would appear to signal an attempt by Apple, the world’s biggest seller of tunes, to revamp its music business more than a decade after it opened the iTunes download store.

“Beats has a unique brand. It speaks to a nice young demographic, which is really interesting to marketers,” Peter Csathy, former president of Musicmatch, told Forbes.

Beats Monster headphones sit on an Apple iPad Mini. Reports say that Apple is near to closing a deal to buy the electronics company for an estimated $3.2 billion.

Dre, who put the gritty Los Angeles suburb of Compton on the musical map, grew up in the projects with his divorced mom, a former singer. An indifferent student, Dre found his calling when he was given a music mixer for Christmas in 1984 and turned his family home in a studio.

Using a moniker inspired by hoops star Julius “Dr. J.” Erving, Dre first found fame with the pioneering gangsta rap group N.W.A., which included Eazy-E and Ice Cube. Their first album “Straight Outta Compton” was released in 1988. The group drew criticism from law enforcement, including the FBI, for the album’s popular single, “F— tha Police.”

Dre co-founded Death Row records in 1991 and his debut solo album “The Chronic” went triple platinum and he won the first of his six Grammy Awards for the single “Let Me Ride.”

Dre started up Aftermath Entertainment in 1996 and signed Eminem and 50 Cent to his label. That led to acting roles in movies like “Training Day” for Dre, now a married father of five. Along with the boatloads of cash came a newfound respectability and Dre soon became fast friends with the Brooklyn-born Iovine.

At 61, Iovine has worked with everybody from Bruce Springsteen to “American Idol” winner Phillip Phillips and who is considered one of the wise men in the music business. Their shared distaste for the iPod earbuds got them into the headphone game and they launched a trendy line to compete with outfits like Bose and Skullcandy.

Selling for up to $450 a pair, the Beats headphones have been derided by critics as way too expensive and by music snobs as too big on bass sounds. But the kids are crazy for them.

 

Source: NYDailyNews

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s