Apple announced that it agreed to acquire Beats Electronics, which is responsible for the Beats Music streaming service and 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 company for a total of $3 billion, consisting of $2.6 billion in cash and $400 million in stock.
Tim Cook, Apple CEO:
“Music is such an important part of all 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.”
Jimmy Iovine, Beats Electronics co-founder:
“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, Apple senior vice president of Internet Software and Services:
“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.”
Subject to regulatory approvals, Apple expects the transaction to close in fiscal Q4.