The news of Apple’s Beats acquisition has been circulating for about a month. The word was unofficial, and many naysayers were hoping that Apple would back out before it became official.
Well, Apple has just announced that they’re buying Beats Electronics and Beats Music for $3 billion.
$2.6 billion will be paid now, and $400 million will “vest over time”.
Jimmy Iovine and Dr. Dre will join Apple’s management.
Iovine says, “I’ve always known in my heart that Beats belonged with Apple… 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.”
Apple will sell beats online and in stores, expanding the brand to more countries.
Beats’ brand and products have long been designed by Robert Brunner and Ammunition Group. Now, Apple will take over design duties.
Apple expects the deal to close by the end of the fourth fiscal quarter, which ends in September.
When Beats Electronics was first taking off they almost partnered with Apple for distribution. Beats ended up partnering with Monster.