Weeks after reports first surfaced that Apple planned on making its biggest acquisition ever, the company has finally made the deal official. Apple is acquiring Beats Music and Beats Electronics for $3 billion.
The deal was first reported back on May 8 and it was expected that the company would announce the deal officially a week later. However, it wasn’t until today that Apple finally announced it.
Apple has purchased both Beats Music and Beats Electronics. Beats Music is the brand’s recently launched music streaming service, similar to Spotify. Apple has been trying for years to start its own streaming/Internet radio service, so buying Beats Music satisfies that need.
Beats Electronics is the maker of the popular Beats headphones, speakers and other music devices.
The company was founded by Jimmy Iovine and Dr. Dre, who will join Apple as part of the deal.
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” Tim Cook, Apple’s CEO, said in a statement. “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,” Iovine added. “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.”
According to Apple, the $3 billion total comes from a purchase price of $2.6 billion, plus $400 million that will vest over time.
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