Apple confirms it’s Acquisition Over Beats for $3 billion.
During Wednesday, Apple had finally confirmed the rumors circulating around by announcing its acquisition over Beats Electronics in a deal that’s be totaled to be worth around $3 billion.
This acquisition means that Apple shall now be able to expand ts hardware business into premium headphones. It also gives Apple an on-demand streaming music services though Beat Music, which that company had previously been wary to do in fear that its would corrupt the digital download sales on iTunes.
The deal itself also included an acquisition price of approximately $2.6 billion in cash, and approximately $400 million in stock that will vest over time for both Beats Electronics and its Beat Music streaming music service. That’s a tad lower than what sources had initially reported, which was $3.2 billion, but it still quite a load of money.
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Apple CEO Tim Cook in a statement about the deal. “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.”
As part of the struck deal, Beats CEO Jimmy Iovine and famous rapper and Beats co-founder Dr.Dre shall be joining Apple. This is something that bystanders speculated about during the days after the news over the acquisition had leaked, with Iovine stating to be Apple’s choice to take over its digital media business. Although, Apple has not yet disclosed during the release on what roles Iovine and Dre shall be assuming during the time at the company.
“I’ve always known in my heart that Beats belonged with Apple,” said Iovine in a statement. “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.”
Apple stated it expects the acquisition deal to close in the fiscal fourth quarter, provided that everything passes regulatory approval.