Apple/Beats deal now rumored to have lower price tag
Apple's deal to purchase Beats is reportedly being dialed back a bit, though at $3 billion it's still quite the acquisition. The deal, which has yet to be formally announced, was first leaked three weeks ago, with a price tag of $3.2 billion. Apparently the negotiations weren't near complete, and the massive leaks around the acquisition, not to mention the profane boasting of Beats co-founder Dr. Dre and a report that Beats Music had as few as 110,000 subscribers did not help things much.
That said, $3 billion is still nothing to sneeze about. The Beats Music service might not be gaining traction, but it's still a solid service, and even with it weighing on Beats' books the company still recorded sales of $1.3 billion in 2013 (a generally small drop in the bucket for Apple, though).
Dr. Dre's share of Beats is reported to be around 25%, which could see him netting "just" $750 million off a $3 billion sale. Once the IRS gets their hands on that sum, he'll be well short of that "first billionaire in hip-hop" status he'd claimed. Sorry bro.
Do you see $3 billion as a fair price for Beats?
Source: New York Post