Tim Cook’s internal memo to Apple employees regarding Beats acquisition

First published by 9to5Mac, here is Tim Cook’s internal memo to Apple employees regarding Beats acquisition, verbatim:

Team,

This afternoon we announced that Apple is acquiring Beats Music and Beats Electronics, two fast-growing businesses which complement our product line and will help extend the Apple ecosystem in the future. Bringing our companies together paves the way for amazing developments which our customers will love.

Music is an important part of our lives and our culture. Music has the power to inspire us, to comfort us, and to send our emotions soaring. It brings people together and transcends the limits of spoken language.

Apple’s history in music began with selling Macs to musicians. That remains important to us today, but we also bring music to hundreds of millions of customers with iTunes, which is at the forefront of the digital music revolution. Music holds a special place in our hearts at Apple, and we know that we can make an even bigger contribution to something that is so important to our society. That’s why we have kept investing in music and why we’re bringing together these extraordinary teams — so we can continue to create the most innovative music products and services in the world.

Beats co-founders and music industry pioneers Jimmy Iovine and Dr. Dre will join Apple, along with their team of employees. Jimmy has been on the cutting edge of innovation in the music industry for decades, including as a key partner for Apple in the launch of the iTunes Music Store more than ten years ago. He has produced or collaborated with some of the most popular artists in history, and been an important contributor to the success of the iTunes Store.

Beats Music was built with deep respect for both artists and fans. We think it’s the first subscription service to really get it right. Both Apple and Beats believe that a great music service requires a strong editorial and curation team, and we will continue to expand what we do in those areas. The addition of Beats will make our incredible iTunes lineup even better, extending the emotional connection our customers have with music.

The Beats Music team will report to Eddy. The teams will be getting to know each other better in the weeks ahead, and we are very excited about the possibilities for the future.

Beats Electronics has become the brand of choice for headphones and speakers in both the music and sports world, just five years after its launch. They are among the most popular and highest-rated third-party products sold today in Apple’s retail and online stores. We see an incredible opportunity to bring Apple’s legendary design and engineering capabilities to these popular products under Phil’s leadership.

Please join me in welcoming Beats to Apple. I hope you are as excited as I am about this new chapter in our history.

Tim

Related articles:
It’s official: Apple acquires Beats Music and Beats Electronics for $3 billion – May 28, 2014
Apple reportedly cuts $200 million off Beats purchase price – May 28, 2014
Why the Apple-Beats deal may be dead – May 27, 2014
Has Dr. Dre’s drunken boast cost his company $3.2 billion? – May 24, 2014
Apple might buy Beats Electronics with foreign cash, effectively paying much less than $3.2 billion – May 23, 2014
70% chance Apple’s Beats deal is happening and, if so, it’s a Dr. Dre, Jimmy Iovine acquihire, says source – May 22, 2014
As MacDailyNews already posited, Walter Isaacson thinks maybe Jimmy Iovine will run Apple’s content business – May 20, 2014
Apple strikes a new chord in the future of music with Beats acquisition – May 18, 2014
How Tim Cook buying Beats is like Steve Jobs buying SoundJam – May 18, 2014
Apple’s $3.2 billion Beats acquisition may not be finalized until next week – May 15, 2014
Monster CEO sounds a little bitter over Apple’s planned $3.2 billion Beats acquisition – May 14, 2014
Ben Thompson on possible Beats buy: Is Apple losing what makes Apple, Apple? – May 13, 2014
Nolan Bushnell: Beats is a ‘good deal for Apple,’ but it says Apple is ‘not an innovative tech company’ – May 13, 2014
Curated music influencing Apple’s jump into streaming – May 13, 2014
Beats Music is actually so good that I’m worried about Apple ruining it – May 13, 2014
Apple could become most powerful record label in the world with Dr Dre, Jimmy Iovine onboard – May 13, 2014
Bob Lefsetz on Apple-Beats deal: Tim Cook is an operations guy, he’s clueless, and the company has no vision</a – May 13, 2014
Apple CEO Tim Cook makes break from managerial style of Steve Jobs – May 12, 2014
Analyst Sacconaghi on Apple buying Beats: ‘We struggle with the rationale for this deal’ – May 12, 2014
Cody Willard: Apple’s Beats buy is just stupid
– May 12, 2014
Apple may unveil Jimmy Iovine, Dr. Dre executive appointments at WWDC – May 12, 2014
Apple CEO Tim Cook’s pursuit of Beats seen presaging more takeovers – May 12, 2014
Former eMusic CEO explains why Apple wants to buy Beats – May 12, 2014
Apple’s deep ties with Jimmy Iovine key driver of Beats deal – May 12, 2014
Removal of Dr. Dre video about Apple-Beats deal likely means acquisition is real and imminent – May 10, 2014
Dr. Dre boasts of Apple-Beats deal in YouTube video, on Facebook – May 9, 2014
Game changer: Apple buying Beats could radically transform the digital music business – May 9, 2014
If Beats deal happens, Apple is acquiring a fad, not quality, and that is troubling – May 9, 2014
If Apple’s really buying Beats, here’s hoping it’s brilliant in a way which isn’t immediately obvious – May 9, 2014
The reason for Apple’s $3.2 billion interest in Beats? Spotify – May 9, 2014
Apple buying Beats Electronics: Its best idea since the iPad? – May 9, 2014
Why would Apple want to blow $3.2 billion on Beats Electronics? – May 8, 2014
Apple in talks to buy Beats Electronics for $3.2 billion – May 8, 2014

58 Comments

  1. The headphones will obviously get improved and brought to Apple’s audio quality standards and fidelity like the iPod, now that Apple calls the shots.

    There’s no doubt about it .

  2. Whatever the history between the beats guys and apple, they paid well over the price for that company.

    Reading between the lines, this email says to me that Apple couldn’t work out their own music subscription solution.

    Dre and Levine are amazing guys, but they ain’t worth $2 billion or anyone’s money.

    1. 3X sales was cheap. How many times sales did Google pay for Nest Didn’t Nest just have a massive recall on their one of their detectors. Nest attaches a wifi connection to a $10 smoke or CO detector and sells them for eel over a $100. GOOG paid $11 B for an unprofitable Motorola then pissed away a few hundred million more before selling t at a loss. Apple says earnings accretive for 2015 which means in its fist year because the deal won’t c;ode until late Q4 2014.

  3. Headphones Shmeadphones! Good Lord, this site is filled with dunderheads! It’s the Beats streaming, human-curated music, along with Jimmy Iovine’s/Dre’s connections they are buying. It’s brilliant and will make iTunes the King of Music forevermore. People, PLEASE get a clue. Sheesh. (NOT…about headphones)

    1. Correct, it is not solely about headphones but it is a big part of it; the visible brand sitting on top of Richard Sherman’s head in place of Apple’s EarPods.

    2. Look, Cook just bought the headphone company too. If he didn’t want the headphones, as you insinuate, he’s got them now. What Apple is going to do to turn around a bling-focused “audio” company with overpriced low-fidelity noisemakers is anyone’s guess. But don’t pretend that the hardware wasn’t part of the deal. Cook got played hook, line, and sinker.

    3. Exactly.
      Beats headphones is a niche market (perhaps a very large niche?). This is all about Iovine, streaming (audio and video) and revenue streams that will survive the demise of purchased recorded music.

  4. Even though I am not a big into their headphones, I am diving into their music service to see if I can get into it. So far I don’t see much difference between it and spotify. So, why say it is doing the best in music service? Guess it will take a while to find out for me. I don’t like being able to share my playlist to others…but most all of the services do this….

  5. I miss Steve’s brevity.

    “Music is an important part of our lives and our culture. Music has the power to inspire us, to comfort us, and to send our emotions soaring. It brings people together and transcends the limits of spoken language.”

    Ugh? i mean.. sure, but … writing like this is close to soulless managementspeak but with a Jobsian peaceout twist.

  6. “Music is an important part of our lives and our culture. Music has the power to inspire us, to comfort us, and to send our emotions soaring. It brings people together and transcends the limits of spoken language.”

    Of course it can, but it can also be used by some people to shut themselves out of the world, and then walk head on into plate glass windows. “just saying”

  7. Remember the smartphone map comparing iPhone vs Android ownership in NYC and Newark, NJ ? Regardless of any other benefits of this deal for Apple, the Beats acquisition might also serve as a catalyst to move entire cities like Newark NJ over to the Apple iPhone camp. That would be cool.

  8. Anybody else think that by getting Iovine and Dre they are about to become their own music studio, cutting out the studios and making music directly with artists? Imagine the potential shift in the industry if that were the case. Don’t deal with content providers, become the content provider. If so, that is worth $3 billion.

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