After so many days of rumors and doubts, it’s official now. Apple CEO Tim Cook announced in his letter that Beats Music and Electronics will be acquired for $3 billion which will also be the company’s biggest acquisition.
The acquisition which was estimated at $3.2 billion according to reports and the deal was finalized at $3 billion which will close in the fourth quarter.The acquisition will include Beats music subscription service and the patented Beats Audio software technology. Beats will continue remain as a separate division and Beats products will be offered to many more countries where Apple has established its retail stores and Authorized re sellers.
“Apple is acquiring the two companies for a total of $3 billion, consisting of a purchase price of approximately $400 million that will vest over time,” said Apple in a statement.
“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.”
Beats was launched in 2008 by hip-hop artist Dr. Dre and Jimmy Iovine, Chairman of Interscope Geffen A&M Records and their electronics is popular among sports and celebrities. Apple is all set to benefit from the deal as the company’s in-car entertainment CarPlay will be released this year with high-end audio in CarPlay consoles. Beats Music, a music streaming service which has about 200,000 users will be an addition to the company along with Apple’s iTunes and will compete with apps like Google Play Music and Pandora.
Apple CEO Tim Cook sent a letter to the employees for explaining the $3 billion acquisition. He added that the acquisition will allow Apple to create the most innovative music products and services in the world. Users can expect a new range of Beats electronics along with Apple docks and significant improvement in the audio quality in the products.
[ Source ]