Beats electronics and Beats audio, are now officially owned by Apple Inc., since Apple acquires Beats for $3 Billion.That’s a pretty huge sum of money, but it’s still less than what in the past was circulating, that the purchase would be for $3.2 Billion.The acquisition ranks as the largest that Apple has ever made and will see it take ownership of an enormously successful and profitable line of consumer headphones as well as a burgeoning subscription music service. Beats co-founders Jimmy Iovine and Dr. Dre will also join Apple as part of the acquisition, which it will pay for with $2.6 billion in cash and $400 million in stock.
Apple has officially closed on a deal to purchase Beats Electronics for $3B. Apple announced the deal in an official press release:
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.”
Apple is counting on the Beats acquisition to boost its cachet with teenagers and younger adults as it tries to remain a leader in digital music — an industry that looks much different than when Apple reshaped the scene with the 2001 debut of the iPod. For those wondering about the fate of Beats Music on other platforms like Android and Windows Phone, Apple plans to keep those assets alive for the foreseeable future. Since Apple normally closes off access to other operating system after buying out an app or service, the unusual move to keep Beats Music alive may be a bid to appease regulatory agencies that have yet to sign off on Apple’s acquisition. Now as that Apple acquires Beats, let’s see the price of the Beats products drop to some extent, or increase further.