Apple’s acquisition of Beats Music, the subscription music streaming service and the headphones division Beats headphones for $3bn will see co-founder Dr. Dre and Jimmy Iovine join the company as well, it has confirmed.
The long rumoured deal was finally concluded at an initial cost of $2.6bn, and around $400m being invested ‘over time’.
Commented Tim Cook, CEO of 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.”
“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.”
Subject to regulatory approvals, the transaction is expected to conclude in in the fourth quarter of this year.