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Apple Acquired Beats Electronics for $3 Billion

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Apple Acquired Beats Electronics Let’s take our minds off those numerous iPhone 6 rumors and take a look at what Apple’s been doing these days, because it’s big and important. It was announced that Apple acquired Beats Electronic for $3 billion ($2.6 billion in cash and $400 million in stock that will vest over time). Great news, don’t you think?

Apple Acquired Beats Electronics

Beats Electronics is a company founded in 2008 by producer and singer Dr. Dre and Jimmy Iovine, chairman of Interscope Geffen A&M Records. It offers premium headphones, speakers and earphones, as well as the popular and patented Beats Audio software technology that is incorporated by smartphones and laptops. Another cool and innovative service that Beats has to offer to the public is a streaming music subscription service, Beats Music that focuses on providing personalized music experience. In short, Beats Music delivers the right music any time and for any situation. It’s a smart service, one that has so much more to offer the public.

Apple acquired Beats Electronics and the Beats co-founders will join Apple. Eddy Cue, Apple’s senior vice president of Internet Software and Services had this to say about the purchase in an official statement:

“Music is such an important part of Apple’s DNA and always will be. 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.”

Apple is expected to finalize the deal by the September 28 2014, which signifies the end of the fiscal year. The company will preserve the Beats brand and it will continue to operate the popular streaming service, Beats Music.

Tim Cook, CEO of Apple, called the deal a no-brainer, stressing the fact that Apple doesn’t always want to build everything on its own and that sometimes help is welcomed. Apple has acquired 27 companies over the last year. Tim Cook also had something to say about Beats joining Apple:

“Music is such an important part of all of our lives and holds a special place within our hearts at Apple. 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”

What are your thoughts on this news? Do you think the fact that Apple acquired Beats Electronics is a smart move? Share your thoughts with us in the comment section below.

Filed Under: Music Tagged With: Apple, beats electronic, dr dre, music, Tim Cook

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