The rumour is "not true" says the tech giant
Apple has denied a report which states the company is planning to shut down the Beats Music streaming service.
Apple and Dr Dre‘s Beats Music streaming service and headphones company Beats Electronics closed a $3 billion deal in August of this year. However, according to “several prominent employees at Apple and Beats” writes Tech Crunch, Apple will be bringing the streaming service to an end. Apple has denied this report via the Hollywood Reporter, issuing a statement saying the rumours are “not true”.
Apple welcomed Beats “to the family” on a post on its homepage last month. “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.”
Apple paid $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 fortune total of $550 million.