Jimmy Iovine may be leaving Apple after the shares he acquired as part of the $3 billion Beats deal vest fully later this year. According to Variety this morning, the executive stands to make a small fortune as soon as his Apple stock fully vests in August 2018.
Using the metric of a 19% average rise over three-and-a-quarter years, Iovine’s Apple stock would be worth about $700 million today, the sum he would presumably share with Dr. Dre.
Apple in 2014 acquired Beats Electronics LCC for $3 billion, turning Iovine and his longtime friend and business partner Dr. Dre into billionaires.
Apple paid $2.6 billion in cash and $400 million in stock for Beats.
From the report:
Of course, with a market cap in excess of $900 million (nearly $1 trillion, at current share prices) Beats, Apple Music, Beats Radio 1 and additional initiatives by Iovine and his team are ‘a tiny blip’ in the Apple ecosystem, says one insider, as is a payout of nearly $1 billion.
Another source says Iovine’s plan was always to exit once hitting the last of his exercise options over a three-year vesting period. He could, however, continue to work with Apple in a consulting role.
The report notes that Iovine, 64, has not yet decided whether he will be leaving Apple once his stock vests. He holds no official title at the Cupertino technology giant.
Dr. Dre also has Apple stock holdings that are reportedly scheduled to vest along the same timeline, but his future plans are currently unknown.