When news spread last week that Apple Inc. was near an acquisition of Beats Electronics LLC for $3.2 billion, Beats co-founder Dr. Dre appeared in a video boasting of becoming the “first billionaire in hip hop.”
Apple Inc. agreed to buy Beats Electronics LLC for $3 billion, its biggest-ever acquisition, nabbing a popular line of headphones and a nascent subscription music-streaming service as the iPhone maker seeks to rev up growth.
Beats Music LLC, the subscription streaming service from rapper Dr. Dre and record producer Jimmy Iovine, raised a second round of funding from existing investors, said three people with knowledge of the deal.
Fans of the signature boom in Beats Electronics headphones can thank Mike Klasco, an audio-equipment consultant who was responsible for the speaker and related electronic innards of the original device. But if Apple spends $3.2 billion to acquire Beats as expected, Klasco won't be among those who reap the benefits.