Apple Peels Off $3 Billion For Beats Electronics
May 28, 2014 at 2:27 PM (PT)
Rumors become reality as APPLE confirms that it is buying BEATS ELECTRONICS LLC for $3 billion to bring its music-streaming service, high-end headphones and music-industry connections into the fold. The purchase price of approximately $2.6 billion and approximately $400 million that will vest over time.
Along with the company comes BEATS co-founders music superstar DR. DRE and INTERSCOPE GEFFEN A&M music maven JIMMY IOVINE -- and the BEATS brand will continue as its own entity.
Almost 3 weeks ago (NET NEWS 5/8), ALL ACCESS first reported the deal as a real possibility.
APPLE CEO TIM COOK said, "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."
IOVINE said, "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."
"Music is such an important part of APPLE's DNA and always will be,” said EDDY CUE, APPLE's SVP/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."