Apple Buys Beats For $3 Billion

Apple announced Wednesday (May 28) that it has acquired Beats Music, and Beats Electronics, which makes Beats headphones, speakers and audio software, for a total of $3 billion, according to a statement. The purchase consists of an estimated $2.6 billion and an estimated $400 million that will vest over time. Beats co-founders Jimmy Iovine and Dr. Dre will join Apple.

As part of the deal, Apple will receive Beats’ audio accessories business; Beats Music will now also be part of 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.”