Apple buys Beats Audio for $3 billion
The purchase is an admission by Apple that its pay-per-tune payment plan for iTunes is not working. Apple wants to have a service that charges users monthly for access to content, and Beats Music fits the bill. Dr. Dre dialed down the celebration after an initial self-congratulatory video selfie made Apple brass a bit worried about the deal. Today, Dre said, "Financially I'm in a place I never dreamed of. Now I'm just ready to get started with the work."
Many might consider the price high considering Beats Music had just 111,000 paying subscribers in March. But the headphones division raked in over $1 billion in revenue, and that might be a cash cow for Apple until the streaming music side of the company starts performing.