Photo: radiofacts.com
The company producing the devices million of people love so much has just announced that it’s officially acquiring Beats Music and Beats Electronics, founded by famous rapper Dr. Dre and music producer Jimmy Iovine. The auto market will also be affected by this $3 billion dollar deal, considering the car sound systems for Chrysler, Fiat and Dodge are using or will use Beats’ technology.
By far the largest acquisition in Apple’s 38-year history, the official announcement has been expected for almost three weeks. Their decision was first heard of when rapper Tyrese posted a video while celebrating the deal with Dr. Dre. A lot of speculations about the reason Apple would pay so much money were made, but it seems music is the simpe answer.
Well, it looks like Steve Jobs’ biographer, Walter Isaacson, was right saying that the actual reason was the music industry and Iovine’s connection to the biggest names in the business. In fact, both services that Beats offer are important, although voice in the market consider the streaming service is the "gold" they looked for.
“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,” is shown in Apple’s press release, published yesterday.
Apple is getting Beats Electronics and Beats Music for a total $3 billion (EUR 2.21), consisting of a purchase price of approximately $2.6 billion (EUR 1.91 billion) and other $400 million (EUR 293 million) in shares. As reported previously when the deal was not official yet, Jimmy Iovine and Dr. Dre will be joining the executive team, only the exact positions are still not known.
Well, it looks like Steve Jobs’ biographer, Walter Isaacson, was right saying that the actual reason was the music industry and Iovine’s connection to the biggest names in the business. In fact, both services that Beats offer are important, although voice in the market consider the streaming service is the "gold" they looked for.
“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,” is shown in Apple’s press release, published yesterday.
Apple is getting Beats Electronics and Beats Music for a total $3 billion (EUR 2.21), consisting of a purchase price of approximately $2.6 billion (EUR 1.91 billion) and other $400 million (EUR 293 million) in shares. As reported previously when the deal was not official yet, Jimmy Iovine and Dr. Dre will be joining the executive team, only the exact positions are still not known.
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