Who started Beats?
Apple acquired Beats Electronics and now-defunct Beats Music in 2014 for a deal totaling $3B
Beats Electronics was established in 2006 by rapper and producer Dr. Dre and co-founder of Interscope Records Jimmy Iovine.
Beats is an audio brand comprised of Beats by Dr. Dre, a family of headphones, earphones and speakers, as well as Beats Audio software technology, according to Apple. With these products, Beat's website says it has "introduced an entirely new generation to the possibilities of premium sound entertainment."
The company also owned and operated Beats Music, a now-defunct subscription-based online music streaming service.
BEATS BY DRE SIGNS NASCAR'S BUBBA WALLACE TO ENDORSEMENT DEAL AMID TRUMP SPAT
However, prior to co-founding the company, Dre was initially considering designing sneakers, not headphones. Back in 2006, the two entrepreneurs were walking along the Pacific Ocean when Dre said he was interested in starting a shoe line and even had an offer from a major company, Forbes reported. However, Iovine reportedly nixed the idea right off the bat.
“F--- sneakers,” he said. “Let’s sell speakers!”
Within eight years, the brand caught the eye of tech behemoth Apple.
By 2014, Apple had acquired Beats Electronics and the company's subscription streaming music service Beats Music in a deal that would total $3 billion. As part of the deal, Iovine and Dre, billed as pioneers, artists and entrepreneurs, would effectively join the Apple team.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 229.87 | +1.35 | +0.59% |
At the time, Apple touted that Beats -- whose logo was simply "b" -- was the go-to brand in music and sports. Apple also noted that it was the "leader" in the premium headphone market.
The brand quickly made its way into the pop culture scene with celebrities including Lady Gaga, Lil Wayne and Nicki Minaj creating their own customized Beats and speakers for consumers.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
What's more, fashion designers and street artists including Alexander Wang, Futura and Snarkitecture created special, limited-edition products. The products were seen on various athletes from LeBron James and Serena Williams to Neymar, who used them during training.
The products were soon available throughout Apple retail stores and online.
However, by 2015 Apple decided to pull the plug on Beats Music. The company announced that Beats Music subscriptions will be canceled by Nov. 30 of that year and encouraged consumers to its new streaming service, Apple Music, according to the Los Angeles Times.