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Wednesday, May 28, 2014
Apple Confirms Acquisitions Of Beats Music And Beats Electronics
After weeks of rumors, Apple on Wednesday confirmed it has acquire headphone maker and music streaming service Beats for for $2.6B and $400M in stock.
The subscription streaming music service Beats Music, and Beats Electronics 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."
"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.
Subject to regulatory approvals, Apple expects the transaction to close in fiscal Q4.
The deal shows the Cupertino, California-based company is serious about introducing its own music-subscription service. Apple took a step in that direction last year, introducing iTunes Radio, an ad-supported music-streaming service that competes with Pandora.
While Apple?s iTunes remains the world?s largest seller of music, it only offers downloads of single tracks and albums.