Dr. Dre is poised to become hip-hop’s first billionaire after striking a $3.2 billion deal with Apple to sell Beats Electronics, an audio equipment and music-streaming service that he co-created, according to the Washington Post.
The deal, on which Apple and Beats declined to comment, is reportedly the largest acquisition for the consumer electronics company, the Post reports.
The move comes amid waning sales for Apple, the result of a dearth of new products to draw consumers to stores, the Post writes, citing an investor note from Needham analyst Charlie Wolf obtained by Apple Insider. Apple, which has experienced a renaissance in recent years, now faces intense competition from Microsoft, Google and smartphone maker Samsung, the Post says.
Forbes reports that while capital gains taxes would likely claim a big chunk of the payment, Dre would still be left with a net worth of close to billion. That amount would easily make him hip-hop’s richest man, topping current champion Sean “Puff Daddy’ Combs by about $100 million.
Dre, born Andre Young, helped make West Coast gangsta rap accessible to the general public and is credited with launching the careers of Eminem and 50 Cent when he signed them to his record label, Aftermath Entertainment. The Chronic, his solo debut in 1992, represents the quintessential hip-hop album. He co-created Beats with record executive Jimmy Iovine.
Read more at the Washington Post.