Apple is spending $3 billion on Beats Electronics and Beats Music. How did they decide on this staggering amount?
Wall Street Journal has spoken to “people familiar with the matter“.
These unnamed sources say that Apple spent just over $2.5 billion on Beats Electronics, and just under $500 million on Beats Music.
The two divisions of Beats are backed by separate investors.
Earlier this week, Apple’s CEO, Tim Cook, said the acquisition was about hiring the people involved (Jimmy Iovine and Dr. Dre). Cook said expanding Beats’ business was not the reason for the deal.
Cook also said: “We love the subscription service that they built – we think it’s the first one that really got it right.“
Beats Music says they have 250,000 paying subscribers, but that number might actually be significantly lower.
Nina Ulloa covers breaking news, tech, and more. Follow her on Twitter: @nine_u