'Welcome to the family,' said Apple in a statement
Apple and Dr Dre‘s Beats Music streaming service and headphones company Beats Electronics have closed their $3 billion deal.
Apple announced today (August 1) that the deal had closed and welcomed Beats “to the family” on a post on its homepage. “Today we are excited to officially welcome Beats Music and Beats Electronics to the Apple family,” said a statement from the company. “Music has always held a special place in our hearts, and we’re thrilled to join forces with a group of people who love it as much as we do.”
It continued: “Beats cofounders Jimmy Iovine and Dr Dre have created beautiful products that have helped millions of people deepen their connection to music. We’re delighted to be working with the team to elevate that experience even further. And we can’t wait to hear what’s next.”
Speaking when the deal was announced earlier this year, Iovine said: “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 pay $2.6 billion for the two businesses in addition to approximately $400 million “that will vest over time”. Announcing the deal, Apple’s CEO Tim Cook stated: “Music is such an important part of all of our lives and holds a special place within our hearts at Apple. 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.”
Beats Electronics was founded in 2006 and put out its first headphones in 2008. Dr Dre’s involvement with the company has made him the richest artist in hip hop. Beats made $1.2 billion last year, earning him $200 million and leaving him with a total of $550 million.