Apple Confirms Purchase of Beats for $3 Billion

Apple has confirmed their purchase of Beats for $3 billion, ending weeks of rumors regarding the acquisition. Beats is known for their headphones and more recently, their new streaming music service. The co-founders, Dr. Dre and Jimmy Iovine, will join Apple as full-time employees. Apple intends to keep the Beats brand in-tact, according to re/code who have quotes from CEO Tim Cook on why Apple thought Beats was a good fit.

Apple Beats

Because Apple likes the businesses Beats has already built, and wants to make new stuff with the help of its employees, says CEO Tim Cook. “We could build about anything that you could dream of. But that’s not the question,” he said in an interview. “The thing that Beats provides us is a headstart, and it provides us with incredible people, kindred spirits.”

Beats Apple execs

Apple expects the deal to be completed before the end of its fiscal quarter, which is September. Cook seems optimistic as to what the two companies can achieve working together.

“The instant that this deal is approved, we can begin working on the future together. And I believe that that future is better than anything either company could build on its own.”

Beats

Beats co-founder Jimmy Iovine:

“I’ve always known in my heart that Beats belonged with Apple,” said Jimmy Iovine. “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.”

 

This deal means that Apple now has its first app available for both Android and Windows Phone. Tim Cook has confirmed that both will remain, so Apple has no plans to discontinue support for those platforms. This makes sense given a recent report that Apple was looking at possible ways to reverse lagging iTunes sales.

Now that the deal is final, it appears there were a number of reasons as to why Apple bought Beats.

Source: Apple