The Apple Beats deal we have been hearing so much about over the last few weeks is now official, Apple has announced that it will acquire Beats Music and Beats Electronics for a total of $3 billion U.S. dollars.
The purchase price includes $2.6 million up front and $400 million that will vest over time, the company also announced that the Beats co-founders Jimmy Iovine and Dr Dre will join Apple.
The emphasis on the announcement appears to be on the purchase of Beats Music, which ties in with previous reports that Beats Music was what has driven the purchase of Beats by 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.”
“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.”
Apple also talked about Beats Electronics in the release, and how the Beats headphones have become so popular since they launched five years ago, so we can expect to see more Beats hardware under Apple.
Apple are holding their World Wide Developer conference next week, and the Apple Keynote takes place on Monday, and we suspect we will hear more information on what Apple has planned for Beats, and also Dr Dre and Jimmy Iovine, who have now joined Apple.
Apple have said that they expect the purchase of Beats Music and Beats Electronics to be completed by quarter four of 2014, subject to the necessary regulatory approval.
Image Credit Dr Dre / Twitter