Apple Completes $3 Billion Acquisition of Beats, Jimmy Iovine and Dr. Dre Join Executive Team
Posted by Jeffrey Harris on 05.28.2014
Apple officially confirmed today that they have completed their acquisition of the streaming music service Beats Music and Beats Electronics, which includes Beats headphones, speakers, and audio software. Per the acquisition, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple as part of their executive team.
Apple acquired the two companies for $3 billion. This consists of a purchase price of $2.6 billion and about $400 million that will vest over time.
Speaking on the announcement, Apple CEO Tim Cook stated: "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."
Jimmy Iovine added: "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."
The transaction is expected to close in fiscal Q4 for Apple. The deal is still subject to regulatory approvals.