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Apple Buys Beats For $3 Billion Published: May 29, 2014

Apple took a dramatic new direction in the digital music business it once led, officially announcing its purchase of Beats Entertainment, a company built by Dr. Dre and music mogul Jimmy Iovine that sells high-priced headphones and a music streaming service, for $3 billion, according to BuzzFeed.

The purchase, despite much hand-wringing over what Apple is actually buying, is at its core a way to return Apple to a leadership position in digital music, as download sales give way to subscription streaming services. As part of the deal, Dre and Iovine are taking executive positions at Apple running its music operations — though Apple did not specify what those positions would be. The deal consists of a $2.6 billion straight-up purchase with a $400 million earn-out clause.

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