CUPERTINO, Calif. —Apple (NASDAQ:APPL) said on Wednesday that they are acquiring Beats Music and Beats Electronics, both the music streaming service and the headphone and speaker hardware business for $3 billion, of which $2.6 billion is the purchase price, with $400 million future investment. The co-founder of Beats Jimmy Iovine and Dr. Dre will join Apple.
“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,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services.
Beats Audio is known for its headphones with extra-ordinary sound quality and they are very much famous in youngsters. It was really obvious that Apple and Beats deal will be official anytime as earlier this month, we heard that Apple will purchase the music giant for $3.2 billion, and also Dr. Dre made a video in which he and actor/R&B singer Tyrese Gibson perform a song about how Dr. Dre will become the first hip-hop billionaire due to the deal.
Apple’s CEO Tim Cook said that “Music is such an important part of all of our lives and holds a special place within our hearts at Apple”. With the help of Apple, Beats Audio products will be Apple in more countries now thanks to Apple retail outlet and online store. Co-founder of Beats Audio, Jimmy Iovine is really excited about the deal. He said:
“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.”
Tim Cook further said that the co-founders of Beats Audio will be “coming up with ways of features that blow your mind,” he said, “and products you haven’t thought of yet, and seeing around the next corner to articulate the way to take music to an even higher level than it is now.”
Apple really cares about music, and if you are using an Apple iPod or a daily user of iTunes, you will understand how much this deal matter to Apple. Both companies are concerned about quality, and it is certain that the future of both companies is going to be bright.
CUPERTINO, California—May 28, 2014—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.
“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.”
Iovine has been at the forefront of innovation in the music industry for decades, and he has been an instrumental partner for Apple and iTunes® for more than a decade. He has produced or collaborated with some of the most successful artists in the history of the iTunes Store®, helping make it the world’s number one music retailer. Iovine and Dr. Dre are sound pioneers, artists and entrepreneurs.
Beats Electronics has brought the energy, emotion and excitement of playback in the recording studio back to the listening experience and has introduced an entirely new generation to premium sound entertainment. Beats Music was developed by a team of people who have each spent their entire career in music and provides music fans with an incredible curated listening experience.
“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.”
In just five years since launch, the Beats “b” has become the brand of choice in the music and sports worlds, and is the market leader in the premium headphone market. Music superstars including Lady Gaga, Lil Wayne and Nicki Minaj have designed their own customized Beats headphones and speakers. Fashion designers and street artists such as Alexander Wang, Futura and Snarkitecture have collaborated on special limited products, while renowned athletes including LeBron James, Serena Williams and Neymar use Beats as a critical part of their training and game day process. Beats has quickly become part of pop culture in the US and with the acquisition the Beats product lineup will be offered in many more countries through the Apple Online Store, Apple’s retail stores and select Apple Authorized Resellers.