In one of the most discussed news in the tech world, Apple has finally confirmed that it would be acquiring the music streaming and headphone manufacturing giants Beats Electronics for a deal that would cost Apple $3 billion. This makes the Beats acquisition the highest in the history of the company which bought about 27 companies, albeit of a much smaller size last year.
Apple and Beats will continue to exist as separate brands though Beats will now be reporting to Apple as expected. The deal will be closed in the fourth quarter of this year with Apple paying $2.6 billion in cash and the remaining $400 million in stocks. The founding members of Beats, Dr Dre and Jimmy Iovine will take positions in Apple as a part of the deal.
Beats will continue to offer its streaming services to both Android and Windows Phone platform despite the deal. Apple is said to be especially interested in helping Beats fully realise the potential of the streaming service to take on the likes of Spotify and Google Play Music.
Speaking about the acquisition, Apple CEO Tim Cook said, “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.”
Not only is Apple looking at the headphone and streaming services of Beats but also would be working closely with the team from Beats into entering new verticals, most notable the likes of wearables. It certainly would be interesting to see how the entire deal pans out and how much of a profit can this multi billion dollar deal can turn for Apple.