Apple Officially Announces It's Acquiring Beats Music and Beats Electronics

Apple Officially Announces It's Acquiring Beats Music and Beats Electronics

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Apple has officially announced that it's agreed to acquire the 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 Officially Announces It's Acquiring Beats Music and Beats Electronics

Apple notes that:

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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.
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“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.”

The company also praised the Beats brand and says that it will expand the sale of Beats products in more countries through its retail stores, online stores, and resellers.

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.

Subject to regulatory approvals, Apple expects the transaction to close in fiscal Q4. Please follow iClarified on Twitter, Facebook, Google+, or RSS for updates.

Update:
Beats Music has just dropped its yearly subscription price to $99.99

Apple Officially Announces It's Acquiring Beats Music and Beats Electronics
MissingInovation - May 29, 2014 at 10:13pm
Well 3billion sounds like a bunch for the low quality of Beats but maybe the streaming service will make up for it. On the good side maybe the next iPhone won't have such horrible buds for people to show off. If the streaming was lossless I would be on board in a second though. Tired of buying hd's to support my increasing lossless library.
Jane Doe - May 29, 2014 at 5:29pm
Whats the use of Beats Music when you only can use it in the US? The headsets are not the best on the market. Which makes the deal very expensive. It will continue to take years to have the services rolled out in Europe for example. So for me no excitement, just money spent
gotsauss - May 29, 2014 at 3:52am
sounds good to me!!! (LOL)
gotsauss - May 29, 2014 at 9:19pm
oops i didn't mean "LOL" as in sarcastic. i meant "sounds good" because of the play on words with "sound". oops!
paulMOGG - May 29, 2014 at 3:26am
There we go apple and Bests still living in the past!tried to sign up for the new Apple/ Beats only to find it's only available for the poor people that live in the america ! Sucks as usual even though we spend the most money with apple and everyone else !!!
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