Apple’s negotiations to acquire headphones maker Beats together with its music streaming operation have come to a conclusion with Apple investing $3bn (£1.8bn) to buy the business.
As part of the deal that will see Beats Music and Beats Electronics becoming part of the technology giant, the company’s co-founders Jimmy Iovine and Dr. Dre will also join Apple.
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Tim Cook, Apple’s CEO. “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.”
The agreed sum consists of a purchase price of approximately $2.6bn and approximately $400m that Apple will vest over time.
“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.”
Iovine has been at the forefront of innovation in the music industry for decades, and he has been an instrumental partner for Apple and iTunes for more than ten years. He has produced or collaborated with some of the most successful artists in the history of the iTunes Store, helping make it the world’s number one music retailer.
Launched in 2008, Beats has become a massive success in less than five years, with its headphones, earphones and speakers becoming the brand of choice among celebrity users.
With the acquisition of Beats, Apple plans to introduce the company’s products in new markets.