Apple has confirmed that it is to acquire the subscription streaming music service Beats Music, and Beats Electronics, which makes the Beats headphones, speakers and audio software. As part of the acquisition, Beats co-founders Jimmy Iovine and Dr. Dre will join Apple.
Apple is paying $3bn (£1.8bn) for the two companies, slightly less than the figure of $3.2bn when rumours of the deal emerged three weeks ago. The purchase price is made up of approximately $2.6bn, plus approximately $400m that will vest over time. Subject to regulatory approvals, Apple expects the transaction to close in fiscal Q4.
Beats Music – which is based on technology from MOG, which itself was acquired by Beats in 2012 for a reported $10-16m – enables users to stream songs, or download them for a limited time, from a 20m-strong library. The app – available on Android, iOS and Windows Phone – also features recommendations from guest curators and personalisation algorithms which pick songs based on the user’s listening habits.