After an entire week of studying, negotiation and boasting, finally, Beats is now officially acquired by Apple, and Dr. Dre?and Jimmy Iovine will be working with Cook and Co.
Apple manages to buy Beats for $3 billion. This deal includes the purchase of Beats Music which is the company?s subscription based music streaming service, along with Beats Electronics which includes both hardware and software side of their business. Also, as part of this deal, Jimmy Iovine and Dr. Dre will also be working with Apple.
Apple will be handing over $2.6 billion, and $400 million for the equity, which is to be paid over time. However, even with this purchase, Beats will still have the freedom to operate independently, though there will be instances (and a lot of them) where both Apple and Beats will be working together for certain projects in the future.
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” Apple CEO Tim Cook mentioned in a recent press release. “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 Beats acquisition by Apple is ranked the highest and most expensive deal for company acquisition to date, regardless if the price became lower than the original, which was supposed to be $3.2 billion.
What ?Apple would do with Beats is still a bit of a mystery, though Apple?s SVP of Internet and Services Eddy Cue made a comment about the purchase,
“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 expects to seal the deal this coming end of the 4th fiscal quarter of the year.
Image Source: YouTube