Apple has finally acquired the Beats and Beats Electronics for $3 Billion. The deal was rumored for almost a month, and now the deal is officially announced. The deal is expected to be completed by fourth quarter of this fiscal year.
Apple today announced it has agreed to acquire the critically acclaimed subscription streaming music service Beats Music, and Beats Electronics, which makes the popular Beats headphones, speakers and audio software. As part of the acquisition, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple. Apple is acquiring the two companies for a total of $3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time.
Tim Cook, Apple CEO Says:
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Tim Cook, Apple’s CEO. “That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.”
Eddy Cue, Apple SVP of Internet Software and Services says:
“Music is such an important part of Apple’s DNA and always will be,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “The addition of Beats will make our music lineup even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years.”
Jimmy Lovine, Beats co-founder says:
“I’ve always known in my heart that Beats belonged with Apple,” said Jimmy Iovine. “The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”
Beats Music will continue to operate as music Subscription service. The Android and Windows Phone will remain working after the deal. Beats offers $99 yearly music streaming service with a 14 day trial.
It is unclear what Apple will do with Beats. Apple might use the technology in the upcoming iWatch.