Apple officially purchases Beats for $3 billion
Brushing all rumors and alleged talks of negotiation aside, Apple has confirmed its latest and largest purchase of Beats Electronics at the lofty price of $3 billion ($2.6 billion in cash, $400 million in stock). The colossal partnership aims to target the subscription-based music streaming industry while maintaining the integrity of each individual brand. The Beats acquisition is Apple’s largest purchase to date, and, as Apple chief executive Timothy Cook explains, “was a no brainer.” Apple will adopt Beats’ streaming services and popular headphones in an effort to regain control of the streaming service curve against strong competitors like Spotify and Pandora, but will also continue to offer all services through iTunes separately.
Though details regarding future plans of the collaboration remain under wraps, Cook said that, between Dr. Dre, Mr. Iovine and Apple, they are going to be working on “products you haven’t thought of yet, and seeing around the next corner to articulate the way to take music to an even higher level than it is now.”
Via: NY TImes
Photo courtesy of Paul Sakuma and Apple