Wednesday, May 28th 2014

Apple to Acquire Beats Music & Beats Electronics

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.
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13 Comments on Apple to Acquire Beats Music & Beats Electronics

#1
FreedomEclipse
~Technological Technocrat~
Beats Audio/Beats By Dre was actually a partnership between Dre/Interscope Records and Monster Cable.

Dre himself has very little to do with the design of the headphones - he more or less just tests them once Monster Cable (who make the headphones) roll out with a prototype.

Monster Cable design the headphones and they get Dre's opinion before going ahead with a prototype.

Unfortunately for Monster Cable, their 'partnership' with Dre/Insterscope records is less then stellar and they are constantly getting shafted by their partners as this article says

http://gizmodo.com/5981823/beat-by-dre-the-inside-story-of-how-monster-lost-the-world

So I dont know if this means that Apple now owns Monster Cable or Apple are going to be the people who will be making 'beats by dre' headphones instead of Monster Cable.

Either way im sure Monster Cable are happy that the partnership between them is over
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#2
SaltyFish


So basically a company that sells overpriced, over-marketed computers is buying a company that sells overpriced, over-marketed headphones. Must be fun for all those people rich in dollars and poor in sense.

In other words... Oh dear gods! It's real now!
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#3
ZeppMan217
Announced today? I remember reading about this a month ago.
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#4
natr0n
This reminds me of something long ago. Dre Day was Eazy-E's pay day.
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#5
Prima.Vera
First billionaire hip-hopper in the history.
Congrats Mr. Dre.
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#6
Delta6326
And you thought Beats where expensive now....
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#8
xela333
Great. My least favourite electronics company buys my least favourite headphones company.

Now it's going to be twice as difficult trying to ward people away from both : (
Posted on Reply
#9
Hilux SSRG
by: FreedomEclipse
Beats Audio/Beats By Dre was actually a partnership between Dre/Interscope Records and Monster Cable.

Dre himself has very little to do with the design of the headphones - he more or less just tests them once Monster Cable (who make the headphones) roll out with a prototype.

Monster Cable design the headphones and they get Dre's opinion before going ahead with a prototype.

Unfortunately for Monster Cable, their 'partnership' with Dre/Insterscope records is less then stellar and they are constantly getting shafted by their partners as this article says

http://gizmodo.com/5981823/beat-by-dre-the-inside-story-of-how-monster-lost-the-world

So I dont know if this means that Apple now owns Monster Cable or Apple are going to be the people who will be making 'beats by dre' headphones instead of Monster Cable.

Either way im sure Monster Cable are happy that the partnership between them is over
That's a good read, thanks.
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#10
Supercrit
Apple did make some good quality earphones (Apple in ear dual balanced armature, that's about it), just let's hope that it will improve Beats somehow.
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#12
Hilux SSRG
by: hardcore_gamer
What a waste of money.:shadedshu:
Exactly, completely overpriced for what you get. But hey its free money that Apple is dishing out, so why not?
Posted on Reply
#13
NC37
by: Delta6326
And you thought Beats where expensive now....
So true...glad I never buy into these fad head phones.

Headphones are headphones. There is not a ton that can be done to improve quality. Its all in tweaking or adding parts to make one sound better than the other. Perception of quality. Which is perfect for Apple who does that all the time. Cheap parts perceived to be high quality.
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