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Apple confirms it’s buying Beats for $3 billion

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Apple has just confirmed plans to purchase Beats Electronics for $3 billion. The acquisition ranks as the largest that Apple has ever made and will see it take ownership of an enormously successful and profitable line of consumer headphones as well as a burgeoning subscription music service. Beats co-founders Jimmy Iovine and Dr. Dre will also join Apple as part of the acquisition, which it will pay for with $2.6 billion in cash and $400 million in stock.

Apple sees Beats' focus on music as complementary to its own, and it'll have Iovine and Dre working with it on future music offerings. "They’re going to be coming up with [features] that blow your mind," Apple CEO Tim Cook tells The New York Times, "and products you haven’t thought of yet, and seeing around the next corner to articulate the way to take music to an even higher level than it is now."

"I’ve always known in my heart that Beats belonged with Apple."

The two brands will remain separate and will even continue to offer casually competing services, including iTunes Radio and the recently launched Beats Music subscription service. Beats Music and Beats' headphone and speaker division will still be answering directly to Apple, however, with iTunes chief Eddy Cue taking charge of the former and marketing chief Phil Schiller taking the latter. Though this is a relatively huge purchase for Apple — which usually only buys smaller companies — the cost is far less meaningful to it thanks to its sizable stockpile of cash.

The post Apple confirms it’s buying Beats for $3 billion appeared first on Aphroden.


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