Just as earlier reports and rumors stated, Apple today has made it official by acquiring Beats Music and Beats Electronics for a whopping $3 billion. The purchase price of the two companies was approximately $2.6 billion, with approximately $400 million that will be vested over time. According to the official press release from Apple, the acquisition includes Beats co-founder Jimmy Iovine and Dr. Dre joining the Apple team.
“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.”
While for his part, Jimmy Iovine stated, “I’ve always known in my heart that Beats belonged with Apple. 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.”
What will be interesting to know is how Apple will be maximizing both Beats Music and Beats Electronics to regain the huge amount it will spend in buying Beats. Whether the acquisition of these two companies will beef up Apple’s existing music subscription service and music accessory products remains to be seen. The deal is expected to close in fiscal Q4 pending regulatory approval.
Meanwhile, for those of you who own Beats headphones, hold on to them for as long as you can. Soon, all Beats products will be bearing, “Beats by Apple.”