Apple has acquired the subscription streaming music service Beats Music and music accessories brand Beats Electronics, both of which were co-founded by rapper Dr. Dre, for $3 billion.
As part of the acquisition, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple. Apple expects the transaction to close in fiscal Q4.
“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” says Tim Cook, chief executive officer, 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.”
Formally established in 2008 as the brainchild of artist and producer Dr. Dre and chairman of Interscope Geffen A&M Records, Jimmy Iovine, Beats Electronics includes the Beats by Dr. Dre family of premium consumer headphones, earphones, and speakers as well as patented Beats Audio software technology and the streaming music subscription service Beats Music.
Since its launch five years ago, the Beats “b” has become the brand of choice in the music and sports worlds, and is the market leader in the premium headphone market. Music superstars including Lady Gaga, Lil Wayne and Nicki Minaj have designed their own customized Beats headphones and speakers, and fashion designers and street artists such as Alexander Wang, Futura and Snarkitecture have collaborated on special limited products.
With the acquisition the Beats product lineup, the brand will now be offered in many more countries through the Apple Online Store, Apple’s retail stores and select Apple Authorized Resellers.
Beats Music provides a personalized music experience for users through a blend of digital innovation and musical passion and is programmed by a team of music experts with over 300 years of experience across all genres.
“Music is such an important part of Apple’s DNA and always will be,” says Eddy Cue, senior vice president of Internet software and services, Apple. “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.”