The Forbes list will never be the same and hip hop changed everything. According to the Financial Times Apple is reportedly in talks to buy out Beats Electronics for $3.2 Billion. This deal would make this Apple’s largest acquisition ever and would make Dr Dre hip hop’s first billionaire. Beats Electronics, the headphone maker and music streaming operator founded by music producer Jimmy Iovine and the hip-hop star Dr Dre.
Dre’s Beats has become a fashion brand and the headphones are very noticeable. The company was originally conceived as a result of Dre’s dissatisfaction with the sound that is being pushed out of those tiny ear bud Ipod headphones. This deal would be a break from Apple’s traditional growth strategy, Apple has historically shied away from acquisitions under the late Chief Executive Steve Jobs. However this acquisition is reportedly an attempt from Apple to capture the large growing music subscription business, a market that is growing tremendously with over $1 Billion dollars in revenue in 2013 according to a recent report by the IFPI, the global music industry association.
If you are a hip hop fan this is an historical day. This deal is a prime example of big business recognizing the monetizing potential of hip hop and more importantly the business of hip hop. Dr Dre has always been a forward looking visionary and one that is able to see trends before his peers. Dr Dre launched his career with NWA a group that pioneered the LA gangsta rap genre. Dre would lead the nineties with his signature Parliament funk inspired sound as a producer, as a rapper he would drop the Chronic albums arguably one of the top 10 album’s in Hip Hop. Dre launched Snoop Dogg’s career and capped off his career by signing Eminem, one of the top selling recording artist of all time. Today we salute you Dr Dre, it is most definitely Dre Day.