Apple To Purchase Beats Electronics For $3 Billion USD
Apple has announced on their press site that they have entered into an agreement to acquire the Beats Electronics business, famous for making the Beats headphones created by co-founders Jimmy Iovine and Dr. Dre.
The deal is worth $2.6 Billion in cash, and $400 Million in stock (USD).
It is expected that Jimmy Iovine and Dr. Dre will both join Apple in some role.
“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.”
“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.”
“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.”
Great move by Apple, and Beats Electronics. Subject to regulatory approvals, Apple expects the transaction to close in fiscal Q4.