Apple Confirms Beats Acquisition For $3 Billion
Finally, we have confirmed news coming directly from Apple. Apple has acquired Beats Electronics for $3 Billion. In its official press release Apple has said:
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.”
This is the largest acquisition Apple has ever made in its history. Beats Electronics makes a wide range of audio equipment like high-end consumer headphones, speakers, earphones, and car audio systems. It has recently launched a music subscription service which has around 200,000 users. Apple Retail Stores already have a large presence of Beats headphones and portable speakers. This brings a business of around $1 Billion a year. Besides bringing the high-end products and music subscription service Beats Electronics brings in its co-founders: music industry expert Jimmy Iovine and hip-hop artist Dr. Dre.