Apple AAPL today announced it has agreed to acquire the critically acclaimed
subscription streaming music service Beats Music, and Beats Electronics, which
makes the popular 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.
Apple today announced it has agreed to acquire the critically acclaimed
subscription streaming music service Beats Music, and Beats Electronics, which
makes the popular Beats headphones, speakers and audio software.
“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.”
“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.”
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 Electronics has brought the energy, emotion and excitement of playback
in the recording studio back to the listening experience and has introduced an
entirely new generation to premium sound entertainment. 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. “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.”
In just five years since launch, the Beats “b” has become the brand of choice
in the music and sports worlds, and is the market leader in the premium
headphone market. Music superstars including Lady Gaga, Lil Wayne and Nicki
Minaj have designed their own customized Beats headphones and speakers.
Fashion designers and street artists such as Alexander Wang, Futura and
Snarkitecture have collaborated on special limited products, while renowned
athletes including LeBron James, Serena Williams and Neymar use Beats as a
critical part of their training and game day process. Beats has quickly become
part of pop culture in the US and with the acquisition the Beats product
lineup will be offered in many more countries through the Apple Online Store,
Apple's retail stores and select Apple Authorized Resellers.
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
consumer headphones, earphones, and speakers as well as patented Beats Audio
software technology and streaming music subscription service Beats Music.
Through these offerings, Beats has effectively brought the energy, emotion and
excitement of playback in the recording studio to the listening experience and
has introduced an entirely new generation to the possibilities of premium
sound entertainment.
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 delivers 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.
Apple designs Macs, the best personal computers in the world, along with OS X,
iLife, iWork and professional software. Apple leads the digital music
revolution with its iPods and iTunes online store. Apple has reinvented the
mobile phone with its revolutionary iPhone and App Store, and is defining the
future of mobile media and computing devices with iPad.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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