Apple Pays $3 Billion To Acquire Beats

Apple has confirmed it has acquired Beats Music and Beats Electronics for $3 billion, and Beats co-founders Dr. Dre and Jimmy lovine will be joining Apple. 

Beats was known for its headphones, audio software and speakers, and the music service Beats Music with AT&T.

Apple will now operate its native streaming music service in Beat’s Music, going against competitors like Pandora and Spotify.

The Wall Street Journal says ‘Jimmy and Dre’ will work on special projects at Apple and come up with features that blow the consumers mind away. They’re going to take things at a higher level than they currently are.

Beats Music CEO Ian Rogers will report to Eddy Cue, Senior VP Internet Software at Services at Apple.

Here are remarks from Tim Cook:
“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.”
Eddy Cue:
“Music is such an important part of Apple’s DNA and always will be,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “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.”
Jimmy lovine:
“I’ve always known in my heart that Beats belonged with Apple,” said Jimmy Iovine. “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.”
Apple will continue Beats Music with its $99.99 a year subscription with an extended trail of 14-days. iTunes Radio will also continue operating.

Cook also issues an internal memo to Apple staff where he stressed Beats Music is the first subscription service to get it right, and the acquisition will begin a new chapter in Apple’s 40 year history. It’s Tim’s most important takeover. AAPL Apple stock only rose by 1 percent after the acquisition.

(via WSJ, NYT, iDB)


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