Apple acquires Beats for $3 Billion


Apple has finally made its Beats acquisition official, following weeks of speculations and rumors over whether the deal was still on or not.

Why did Apple acquire Beats? Here’s what Tim Cook said:

Music is such an important part of all of our lives and holds a special place within our hearts at Apple. 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.

We could build about anything that you could dream of. But that’s not the question. The thing that Beats provides us is a headstart, and it provides us with incredible people, kindred spirits.

The instant that this deal is approved, we can begin working on the future together. And I believe that that future is better than anything either company could build on its own.

Beats co-founder Jimmy Iovine said:

I’ve always known in my heart that Beats belonged with Apple. 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.

Eddy Cue noted that the acquisition will help Apple make their existing services better:

Music is such an important part of Apple’s DNA and always will be. 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.

Apple will keep the Beats hardware brand as it is, and co-founders Jimmy Iovine and Dr. Dre will join the company as full-time employees. Beats Music, the music streaming arm of the company, will remain as it is too, and CEO Ian Rogers will report to Internet Services chief Eddy Cue. If you’re a Beats Music user on Android or Windows Phone, you have nothing to worry about, the apps will remain on the respective stores.

The deal is expected to close by this September, subject to regulatory approval. The $3 billion amount is the highest ever Apple has paid for acquiring a company.

[via Re/code, Business Wire]