Apple today announced it has agreed to acquire the subscription streaming music service Beats Music, and Beats Electronics, which makes 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 two companies for a total of $3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time.
“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, in a statement. “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.”
“I’ve always known in my heart that Beats belonged with Apple,” said Jimmy Iovine, in a statement. “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.”
Iovine has been at the forefront of innovation in the music industry for decades, and he has been an instrumental partner for Apple and iTunes for more than a decade. He has produced or collaborated with some of the most successful artists in the history of the iTunes Store, helping make it the world’s number one music retailer. Iovine and Dr. Dre are sound pioneers, artists and entrepreneurs.
Beats Music was developed by a team of people who have each spent their entire career in music and provides music fans with an incredible curated listening experience.
“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, in a statement. “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.
Formally established in 2008 as the brainchild of legendary artist and producer Dr. Dre and Chairman of Interscope Geffen A&M Records Jimmy Iovine, Beats Electronics (Beats) comprises the Beats by Dr. Dre family of premium-priced consumer headphones, earphones, and speakers as well as patented Beats Audio software technology and streaming music subscription service Beats Music.
Beats Music is a subscription streaming music service that focuses on providing a personalized music experience for each user through a unique blend of digital innovation and musical passion. Programmed by a trusted team of well-respected music experts with over 300 years of experience across all genres, Beats Music strives to deliver the right music for any situation, any time, and any preference, personalized to your tastes. The result is an artist-friendly digital music service that does more than simply offer access to music, but one that establishes an emotional connection to it as well.
Source: Apple Inc.
MacDailyNews Take: Shittier, more unnatural-sounding headphones, we have not heard. Hopefully Beats Music, Iovine, and Dre are worth the purchase price.
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By the way, as the great man himself once said (that’s SJ in case you are wondering), “If you like the product and you want to buy it, great, if you don’t…..don’t. That’s how it all works”.
Jony Ive is triumphant.
Style over substance and form over function.
Jesus Gawd what a mess.
And yet you continue to use Apple products, I presume.
If you do, then you obviously think they are the best, in spite of what you say.
If you don’t, why are you here?
Speaking in more general terms?…
In for a dime, in for a dollar. You become more than a stakeholder, more than a fan. You acquire righteous indignation and wear it as virtuous armament. The colours you once proudly sported, the banners you carried, suffered disgrace; bitter retribution is your solution.
That’s for Sean’s lament
Well, that woke me up! It’s actually happening.
The point of this purchase still remains a bit nebulous to me. But let’s see what Apple makes of it.
In any case, I seriously don’t see Dr. Dre and the Apple work culture getting along. CLASH is inevitable. He’s not the kind of human I can comprehend having anything to contribute to Apple. I wish it was otherwise. Maybe when he grows up. There’s always hope…
Like everyone else that purchases Monster made products, you paid to much Timmie.
Monster has not made Beats for a few years now so clearly you don’t know your facts – they had to give those rights up with the last Beats sale.
They should buy solar roadways.
Everyone keeps saying that the Beats headphones suck yet they offer no better options – what are the best headphones at around the same price?
Beats was a secret creation by Apple to help ensure they kept in the game.
No proof. Just my intuition.