Apple (Finally) Agrees To Pay $3B For Beats

The announcement, coming 20 days after word of the negotiations leaked, is designed to boost Apple‘s subscription streaming music business and broaden its array of headphones and other audio equipment. Beats co-founders Jimmy Iovine and Dr. Dre will join Apple, the company said without specifying what role they’ll play. The purchase consists of $2.6B with an additional $400M in Apple equity to vest over an unspecified period. “Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” CEO Tim Cook says. “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.” This is Apple’s largest acquisition — and a shift for the company that, under Steve Jobs, was determined to build its own brands instead of buying existing ones. Apple plans to continue offering Beats products under its own brand. (more…)

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