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Apple Buys Beats for $3 Billion

Posted by: Drew Beringer (05/28/14)
Apple has purchased Beats Music for a cool $3 billion.
 
Displaying posts 1 - 15 of 80
01:37 PM on 05/28/14
#2
Drew Beringer
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Apple to Acquire Beats Music & Beats Electronics

CUPERTINO, California—May 28, 2014—Apple® today announced it has agreed to acquire the critically acclaimed subscription streaming music service Beats Music, and Beats Electronics, which makes the popular Beats headphones, speakers and audio software. As part of the acquisition, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple. Apple is acquiring the two companies for a total of $3 billion, consisting of a purchase price of approximately $2.6 billion and approximately $400 million that will vest over time.

“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.”

Iovine has been at the forefront of innovation in the music industry for decades, and he has been an instrumental partner for Apple and iTunes® for more than a decade. He has produced or collaborated with some of the most successful artists in the history of the iTunes Store®, helping make it the world’s number one music retailer. Iovine and Dr. Dre are sound pioneers, artists and entrepreneurs.

Beats Electronics has brought the energy, emotion and excitement of playback in the recording studio back to the listening experience and has introduced an entirely new generation to premium sound entertainment. Beats Music was developed by a team of people who have each spent their entire career in music and provides music fans with an incredible curated listening experience.

“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.”

In just five years since launch, the Beats “b” has become the brand of choice in the music and sports worlds, and is the market leader in the premium headphone market. Music superstars including Lady Gaga, Lil Wayne and Nicki Minaj have designed their own customized Beats headphones and speakers. Fashion designers and street artists such as Alexander Wang, Futura and Snarkitecture have collaborated on special limited products, while renowned athletes including LeBron James, Serena Williams and Neymar use Beats as a critical part of their training and game day process. Beats has quickly become part of pop culture in the US and with the acquisition the Beats product lineup will be offered in many more countries through the Apple Online Store, Apple’s retail stores and select Apple Authorized Resellers.

Subject to regulatory approvals, Apple expects the transaction to close in fiscal Q4.

Formally established in 2008 as the brainchild of legendary artist and producer Dr. Dre and Chairman of Interscope Geffen A&M Records Jimmy Iovine, Beats Electronics (Beats) comprises the Beats by Dr. Dre family of premium consumer headphones, earphones, and speakers as well as patented Beats Audio software technology and streaming music subscription service Beats Music. Through these offerings, Beats has effectively brought the energy, emotion and excitement of playback in the recording studio to the listening experience and has introduced an entirely new generation to the possibilities of premium sound entertainment.

Beats Music is a subscription streaming music service that focuses on providing a personalized music experience for each user through a unique blend of digital innovation and musical passion. Programmed by a trusted team of well-respected music experts with over 300 years of experience across all genres, Beats Music delivers the right music for any situation, any time, and any preference, personalized to your tastes. The result is an artist-friendly digital music service that does more than simply offer access to music, but one that establishes an emotional connection to it as well.

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.
01:39 PM on 05/28/14
#3
thisisasong182
Blink-182 life for life \m/
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01:41 PM on 05/28/14
#4
subplotofcrows
A Small Spark Vs. A Great Forest
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Huge. Just in time for WWDC.
01:44 PM on 05/28/14
#5
Jason Tate
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Interesting. Virtually no mention of the headphone portion ... looks very software focused.
01:51 PM on 05/28/14
#6
waitrewindthat
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Interesting. Virtually no mention of the headphone portion ... looks very software focused.
Apple® today announced it has agreed to acquire the critically acclaimed subscription streaming music service Beats Music, and Beats Electronics, which makes the popular Beats headphones, speakers and audio software.

Unless you miss the first sentence.

Beats Electronics is the division of Beats that makes the headphones.
01:52 PM on 05/28/14
#7
Jason Tate
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Apple® today announced it has agreed to acquire the critically acclaimed subscription streaming music service Beats Music, and Beats Electronics, which makes the popular Beats headphones, speakers and audio software.

Unless you miss the first sentence.

Beats Electronics is the division of Beats that makes the headphones.
And then there's the entire rest of the release which talks primarily about the software and services. My entire point was that difference.
01:54 PM on 05/28/14
#8
undefinedcolton
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spotify is next, then pandora.
01:55 PM on 05/28/14
#9
waitrewindthat
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And then there's the entire rest of the release which talks primarily about the software and services. My entire point was that difference.

While I misunderstood you, there isn't much to talk about headphone wise (except for a whole paragraph about how in just 5 years they became the market leader for headphones) But it's not like apple would announce the acquisition AND share any information on their plans for the headphones/beats music specifically.

The PR is just fluff...apple is a brand that has always taken music seriously blah blah blah. You can't expect them to insert "free beats with every new iPhone 6" into something like this.
01:56 PM on 05/28/14
Jason Tate
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While I misunderstood you, there isn't much to talk about headphone wise (except for a whole paragraph about how in just 5 years they became the market leader for headphones) But it's not like apple would announce the acquisition AND share any information on their plans for the headphones/beats music specifically.

The PR is just fluff...apple is a brand that has always taken music seriously blah blah blah. You can't expect them to insert "free beats with every new iPhone 6" into something like this.
I never expected them to insert anything like that.
01:57 PM on 05/28/14
subplotofcrows
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While I misunderstood you, there isn't much to talk about headphone wise (except for a whole paragraph about how in just 5 years they became the market leader for headphones) But it's not like apple would announce the acquisition AND share any information on their plans for the headphones/beats music specifically.

The PR is just fluff...apple is a brand that has always taken music seriously blah blah blah. You can't expect them to insert "free beats with every new iPhone 6" into something like this.
I think the point is that Apple's focus on Beats is more on the software side.
02:00 PM on 05/28/14
theintention
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Great now we will never get Detox. Dre probably doesn't give a fuck anymore, he can buy an island.
02:01 PM on 05/28/14
popdisaster00
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Great now we will never get Detox. Dre probably doesn't give a fuck anymore, he can buy an island.
Yeah there really isn't much of a financial incentive for him to release another album at this point. If he did, it'd probably be just to prove that he can still produce hits.
02:02 PM on 05/28/14
jiggliotti
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Read: "Apple buys beats for $38"

Wonder what's going to happen with HP's partnership with Beats, they've been pushing the name in their consumer laptops.
02:03 PM on 05/28/14
Timekeeper
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I am expecting the standard Apple headphones to be Beats branded in the future, even if the physical headphones aren't changed at all.
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