OFFICIAL: Apple Acquires Beats For $3 Billion, Iovine and Dr. Dre To Join Apple

Apple announced on Wednesday that it has acquired streaming music service Beats Music and Beats Electronics, makers of Beats headphones, speakers and audio software. As part of the deal, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple in a non-specified executive roles. Apple is acquiring both companies for a total of $3 billion – $2.6 billion now and approximately $400 million that will vest over time. From the statement:

"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.”

“Music is such an important part of Apple’s DNA and always will be,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “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.”

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