Apple says it has agreed to acquire Beats Music, a subscription streaming music service, and Beats Electronics, maker of Beats headphones, speakers and audio software.[blockquote right=”pull-right”]The acquisition of the duo will cost Apple a total of $3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time. As part of the acquisition plan, Jimmy Iovine and Dr. Dre, both co-founders of Beats, will join Apple.[/blockquote]
The acquisition of the duo will cost Apple a total of $3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time. As part of the acquisition plan, Jimmy Iovine and Dr. Dre, both co-founders of Beats, will join Apple.
Tim Cook, Apple’s CEO says “Music is such an important part of all of our lives and holds a special place within our hearts at Apple. 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.”
“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.”
Apple expects the transaction to be consummated in the fourth quarter of 2104, subject to regulatory approvals.
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