Dr. Dre, Jimmy Iovine's Beats Music raises $100M, sources say
Beats Music LLC, the subscription streaming service from rapper Dr. Dre and record producer Jimmy Iovine, raised a second round of funding from existing investors, said three people with knowledge of the deal.
Beats Music, based in Santa Monica, Calif., raised $60 million to $100 million in equity financing, said the sources, who requested anonymity because the round wasn't public. Len Blavatnik, Marc Rowan, James Packer and entities affiliated with Lee M. Bass first provided $60 million a year ago.
The company is raising money as Beats Music seeks to challenge market leader Spotify Ltd. for exclusive music rights and to build new features. Beats Music began service in January with plans marketed through AT&T Inc.
Matt Benson, a spokesman for Beats Music at Sard Verbinnen & Co., declined to comment. Iovine and Dr. Dre, whose given name is Andre Young, previously founded the separately run headphone maker Beats Electronics LLC.
Beats Music offers a $15-a-month family plan to AT&T Inc. customers that comes with a 90-day free trial. Individual plans are $9.99 a month.
Last week, closely held Beats Music agreed to acquire Topspin Media, adding sales and marketing technology for musicians.
Blavatnik's Access Industries Holdings Inc. owns Warner Music Group, one of the three remaining major record labels. His interests also include hotels, chemicals and fashion. Packer is chairman and the largest shareholder in Crown Resorts Ltd., Australia's biggest gambling company by market value. Rowan is a co-founder of investment company Apollo Global Management LLC.